Nigeria’s telecommunications sector is set for a significant price adjustment as Communications Minister Bosun Tijani announced a 30-60% increase in service rate, rejecting the 100% hike initially requested by telecom operators.
Speaking during an interview, Tijani explained that the more moderate increase aims to balance sustaining the industry and protecting consumer welfare. Under the proposed maximum 60% adjustment, call rates would rise from N11 to N18.33 per minute, SMS charges from N4 to N6.67, and 1GB data bundles from N287.50 to N479.17.
“This sector is a key driver of growth in our country,” Tijani said, emphasizing that a 100% rate hike would negatively impact citizens, many of whom depend heavily on affordable telecom services.
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The announcement follows increasing pressure from telecommunication companies struggling with challenging operating conditions. Over the years, the sector has experienced a 300% surge in operational costs, exacerbated by the naira’s devaluation in 2023, which has led to significant financial losses for the operators.
MTN Nigeria CEO Karl Toriola acknowledged the operators’ concerns, noting that while initially seeking a 100% increase, they understand the Nigerian Communications Commission (NCC) must consider the country’s current economic realities.
“We are hopeful and optimistic that the right decision will be made to ensure the sustainability of the industry,” Toriola said.
Minister Tijani’s latest announcement marks a significant policy shift, as telecom companies have long advocated for tariff increases to address rising operational costs. Tijani had earlier hinted in December that price adjustments were essential to the industry’s sustainability.
The proposed tariff adjustment seeks to balance the economic survival of the telecommunications industry with the affordability of services for Nigerians, signaling the government’s commitment to navigating the challenges facing the sector.
