The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has disclosed that the anticipated hike in telecom service prices may increase the floor costs of calls, SMS, and data by 30 to 60 per cent.
This is less than 100 per cent of what telecommunications firms have requested. The minister disclosed this recently while appearing on a Channels TV program, where he insisted that the 100 per cent increment requested by the telecom operators is impossible.
The minister noted that the increase would be between 30 and 60 per cent. “It shouldn’t be anywhere between 30 and 60 per cent.”
If the 60 percent is adopted, the average cost of phone calls will increase from N11 to N18.33 per minute, SMS charges will rise from N4 to N6.67, and the price of a 1GB bundle will increase from N287.5 to N479.17.
Tijani highlighted that increasing costs by 100 per cent would be harmful to citizens who are dependent on telecom services. “This sector is responsible for driving growth in our country. It will be harmful to our people to allow the MNOs to increase by 100 per cent,” said Tijani.
This announcement follows a decade-long agitation for tariff hikes by telcos, who have faced a harsh operating environment that has spiked their operating cost by 300 percent over the years. Record losses since 2023 after a significant naira devaluation have further compounded telcos’ woes, increasing their requests for tariff hikes.
In December, Tijani agreed that tariffs would go up in the interests of the industry’s sustainability. Karl Toriola, the chief executive officer of MTN Nigeria, emphasised that while telcos have asked for a 100 percent increase, the Nigerian Communications Commission (NCC) may disapprove of that quantum of increase as it is sensitive to the country’s current economic situation.
However, he stated, “We are hopeful and optimistic that the realities are facing us and the right decision will be taken for the sustainability of the industry.”
