Nigerians will now pay ₦16.5 per minute for calls and ₦431.25 to subscribe to 1 giga-byte (GB) of data, following a 50% tariff hike by the Nigerian Communications Commission, (NCC) on Monday.
Recall that Minister of Communications and Digital Economy, Bosun Tijani, had hinted that telecom tariffs will go up by either 30 or 50 percent. His position came from a fallout of a meeting between him and operators who had proposed a 100% tariff increase.
The latest telecom tariff hike approval comes 13 years after NCC announced price template in 2013.
Meanwhile, with the latest tariff hike approval, it means that upon implementation, Nigerians may be paying ₦16.5 per minute for calls – from ₦11; the cost of SMS to ₦6 – from ₦4, while the cost of 1GB of data – ₦431.25.
In a statement signed by its director of Public Affairs, Reuben Muoka, the NCC said: “The adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators, was arrived at taking into account on-going industry reforms that will positively influence sustainability”.
It was gathered that telcos may rank in ₦6.7 trillion annually in revenue from calls only with the new tariff regime; this is because the 2023 national telephone traffic data showed that total outgoing telephone traffic was 205.3 billion minutes, while incoming traffic stood at 203.2 billion minutes.
An analysis of data from the latest NCC’s ‘2023 Subscriber/Network Performance Report’ showed that in 2023, total outgoing telephone traffic was 205.3 billion minutes, while incoming traffic stood at 203.2 billion minutes.
At the new rate of ₦16.5 per minute, MTN’s combined revenue from outgoing and incoming calls is projected to exceed ₦4trillion, making it the primary beneficiary of the tariff adjustment and accounting for over 60% of the market’s total revenue.
Airtel is expected to follow with a projected revenue of approximately ₦1.78trillion, reflecting its strong share of both outgoing and incoming traffic. Glo, the third-largest operator, is estimated to generate ₦536.2bn, while 9mobile (EMTS) is likely to generate about ₦105.6bn from its traffic volumes. Smaller players, including Smile and Ntel, are expected to earn ₦5.7bn and ₦13.1bn respectively, affirming their minimal market influence.
Meanwhile, the President of the National Association of Telecoms Subscribers, Adeolu Ogunbanjo, has rejected the imposition of a new duty on the telecom sector, warning that it would worsen the taxation burden and negatively impact Nigerians.
“There was no agreement reached at the meeting with stakeholders. We presented our case, but nothing concrete was resolved during the meeting with the NCC in Abuja”, Ogunbanjo said.
He noted that while the association might accept a tariff increase of 5 to 10%, anything beyond that would be unacceptable. “If this new duty is implemented, we will take the matter to court. This kind of policy cannot stand”, Ogunbanjo declared.
He suggested alternative funding mechanisms for telecom operators, such as raising capital through Initial Public Offerings, (IPOs). Ogunbanjo also highlighted the critical role the telecom sector plays in Nigeria’s economy, noting its contribution to foreign direct investment and GDP growth.
He appealed to the minister to reconsider policies that could further impoverish Nigerians, citing poor electricity and economic conditions as ongoing challenges. “A 50% increase will cripple Nigerians. We will not accept this. A moderate increase is enough, and operators should explore other ways to generate funds”, Ogunbanjo insisted.
