Nigerians may soon experience an increase in calls, data plans and SMS charges from early 2025 as there are indications that the Federal government may give a nod to the persistent calls for tariff review.
NaomisophyBlog Online learnt that the tariff was last reviewed 11 years ago while telecom operators have continued to intensify their calls for a new hike.
Recently, the National Association of Telecommunications Subscribers (NATCOMS) called on the Nigerian Communications Commission (NCC) to allow telecommunications companies (Telecoms) to increase tariffs by a marginal increase of 10 percent, rather than load-shedding, NaomisophyBlog Online reports.
Meanwhile, telco giants like MTN, Glo, Airtel, and 9mobile have consistently called for an increase in tariff rates.
MTN Nigeria’s shutdown threat
NaomisophyBlog Online reports in October that Karl Toriola, the CEO of MTN Nigeria, the largest telecom operator in the country, during a tour of MTN’s facilities by Fellows of the Media Innovation Programme in Ibeju-Lekki, Lagos, warned that the company may shut down if tariffs are not reviewed.
Toriola, who oversees about 78 million subscribers, highlighted that the telecommunications sector is facing severe financial strain, especially from escalating diesel prices required to power base transceiver stations. “There should be no delusion; if the tariff doesn’t go up, we will shut down,” he said, underscoring the urgency of tariff adjustments to reflect current economic realities.
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Toriola also pointed out that MTN, once one of Nigeria’s top corporate taxpayers, has seen its tax contributions decline due to financial challenges. In the first half of 2024, MTN reported a staggering N519.1 billion loss, largely attributed to foreign exchange losses from the naira’s devaluation and high inflation.
Like MTN Nigeria’s Toriola, the Chief Executive Officer of 9mobile, Obafemi Banigbe, recently joined the call for a tariff hike for telecom services.
According to him, the telecom industry has been badly hit by the current naira devaluation, forcing major telecom operators to declare significant losses.
Banigbe disclosed that the costs incurred by the telecom operators have significantly increased, citing towercos, which he said increased their prices by over 300 per cent, “this is an outside hike in diesel cost, insecurity, vandalism, maintenance of sites, infrastructure upgrades, among others.”
He added that the only way for them to survive is a tariff increase, noting that even charges by Customs — a government agency — have increased.
“What they charge us has increased tremendously. We need to act fast to keep the sector going. The industry must get free market opportunities to increase tariffs on services,” the 9mobile CEO said.
Tinubu’s minister hints at a possible tariff hike, but…
The minister of Communications, Innovation, and Digital Economy, Bosun Tijani, recently gave a hint on a possible tariff hike for telecom services.
Tijani, who had stood his ground despite persistent calls over the years and instead, challenged the operators to increase their services first, appeared to be ready for a new development for the industry.
The minister, during a television programme at the weekend, hinted that everything that needed to be done to keep the industry afloat in 2025 would be explored, according to the Guardian.
“We have conducted a study on the Sustainability of the telecoms sector. The result should be out in about two weeks. This will reveal what we need to do to ensure we can support operators more for improved services.
“Beyond just the conversation, which is out there, which is about increasing the tariff, Yes, we think there may be a need for the hike, but lots more need to be done as a country to ensure that the sector is competitive and beyond just supporting them to be competitive, the government must support be investing in digital infrastructure as well,” Bosun Tijani stated.
Telcos may get 40% tariff hike approval early 2025 — Sources
As the calls for tariff increase intensified, a top official of the Nigerian Communications Commission (NCC), who pleaded anonymity, told Daily Trust that the commission might give the approval for telcos to increase rates of calls, SMS, and internet bundles.
“We strongly hope that our approval to increase tariffs has been granted by the federal government. We hear they will allow us to do some upward review of tariffs by the first quarter of 2025. This sector is seriously bleeding; no new investment because of soaring operating costs. Some of us are already making losses. We just hope the sector will not be allowed to die”, the top official told journalists in Lagos.
According to industry sources, current rates for calls, SMS and data plans may increase by 40% if approved.
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