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Starting Friday, January 10, 2025, Nigerians will face higher charges for voice calls, SMS, and internet data plans as the Nigerian Communications Commission (NCC) implements a tariff hike.
This decision follows over a decade of pressure from telecom operators, who have cited rising inflation and the devaluation of the naira as reasons for unsustainable current rates.
The announcement, expected on Friday, comes after months of negotiations between telecom operators and regulators.
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Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, confirmed the long-awaited tariff increase during a stakeholders’ meeting on Wednesday. While acknowledging the necessity of the hike, he assured the public it would not reach the 100% increase initially sought by some telecom operators.
“It will not be by 100 percent,” Tijani stated. “The NCC will soon come up with a clear directive on how we will go about it.”
Telecom companies had proposed a 40% increase in rates as far back as May 2022. If implemented, the cost of a phone call would 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.
Telecom operators have long argued that inflation and the weakened naira have significantly increased operating costs. According to Minister Tijani, these costs have surged by over 300% in the past 18 to 24 months.
Dinesh Balsingh, CEO of Airtel Nigeria, emphasised the need for a gradual approach. “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,” Balsingh wrote in an op-ed. “Our aim is to ensure that Nigeria stays competitive in the global digital economy.”
In parallel with the tariff adjustments, the federal government is advancing plans to deploy a 90,000 km fibre optic network across the country. The project, expected to commence in Q2 2025, aims to expand broadband access to all 774 local governments in Nigeria.
Minister Tijani underscored the government’s dual approach: “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 designed to help telecom operators manage rising costs and reinvest in infrastructure, they also present challenges for consumers. Recognising this, the government and industry stakeholders are committed to balancing the need for affordable services with the long-term goal of improving service quality and expanding digital inclusion.
