Home Science Technology Nigeria to Implement Tariff Hike for Telecom Services Starting January 2025

Nigeria to Implement Tariff Hike for Telecom Services Starting January 2025

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Telecom Mast
Telecom Mast

Beginning Friday, January 10, 2025, Nigerians will face higher charges for voice calls, SMS, and internet data plans as the Nigerian Communications Commission (NCC) enacts a long-awaited tariff increase.

This decision comes after more than a decade of pressure from telecom operators, who have cited rising inflation and the devaluation of the naira as key factors in the unsustainability of the current pricing structure.

The tariff hike, confirmed by Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, follows months of negotiations between regulators and telecom providers. Speaking at a stakeholders’ meeting on Wednesday, Tijani reassured the public that the increase would not reach the 100% hike initially requested by some telecom operators. “It will not be by 100 percent,” Tijani said. “The NCC will soon come up with a clear directive on how we will go about it.”

Telecom companies have been advocating for a tariff increase for several years, with some proposing a 40% rise as early as May 2022. If the proposed hike is implemented, the cost of a phone call could rise from $0.014 to $0.019 per minute, SMS charges would increase from $0.005 to $0.007, and the price of a 1GB data bundle would climb from $1.30 to $1.82.

Operators have argued that inflation and the depreciation of the naira have led to a more than 300% surge in operating costs over the past two years, making the current rates unsustainable. Minister Tijani supported this claim, acknowledging the significant strain the telecom sector has been under.

Dinesh Balsingh, CEO of Airtel Nigeria, emphasized the need for a gradual implementation of the new rates. In an op-ed, Balsingh noted, “While the tariff adjustments are necessary, we are committed to supporting our customers through gradual changes. This will allow us to reinvest in infrastructure, expand coverage, and enhance the overall service experience.” He added that these measures were essential for maintaining Nigeria’s competitiveness in the global digital economy.

Alongside the tariff hikes, the Nigerian government is advancing plans to deploy a 90,000 km fibre optic network nationwide, with the project set to begin in the second quarter of 2025. The aim is to expand broadband access to all 774 local governments across the country. Minister Tijani highlighted the importance of government involvement in infrastructure development, saying, “We cannot leave infrastructure development solely to the private sector. The government’s fibre optic project will ensure that we lay the foundation for better, more affordable services across the country.”

While the tariff increases are intended to help telecom operators manage rising costs and improve infrastructure, the changes may pose challenges for consumers, particularly in an already price-sensitive market. However, the government and industry stakeholders have expressed their commitment to finding a balance that supports both affordable services and long-term improvements in service quality and digital inclusion.

As Nigeria faces these adjustments, the broader goal remains to enhance the nation’s digital infrastructure, ensuring that future telecom services are more accessible, reliable, and globally competitive.

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