By Editor 
The Nigerian Communications Commission’s (NCC) recent approval of a 50% increase in call tariffs is expected to generate over N6.74 trillion in revenue for telecom operators in 2025, assuming call volumes remain stable. This significant hike, which raises the average cost of calls to N16.5 per minute, has sparked concerns among consumers and advocacy groups.
According to the NCC’s 2023 national telephone traffic data, the total outgoing telephone traffic was 205.3 billion minutes, while incoming traffic stood at 203.2 billion minutes. With the new tariff, MTN, the largest operator, is projected to earn approximately N4 trillion from calls, accounting for over 60% of the market’s total revenue. Airtel and Glo are expected to generate N1.78 trillion and N536.2 billion, respectively.
The tariff increase is a response to the rising operational costs and prevailing market conditions faced by telecom operators. The NCC stated that tariff rates have remained static since 2013, despite inflation and increasing costs. The adjustment aims to address this gap, enabling operators to invest in infrastructure and innovation while maintaining service quality.
However, consumer advocacy groups have expressed concerns about the impact of the tariff hike on Nigerians. The National Association of Telecoms Subscribers has rejected the increase, warning that it would worsen the taxation burden and negatively impact consumers. The association has vowed to take legal action if the proposed duty is implemented without addressing subscribers’ concerns.
“We presented our case, but nothing concrete was resolved during the meeting with the NCC in Abuja,” said Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers. “If this new duty is implemented, we will take the matter to court. This kind of policy cannot stand.”
Ogunbanjo suggested alternative funding mechanisms for telecom operators, such as raising capital through Initial Public Offerings. “Let Nigerians be part of the business by buying shares. MTN has already gone public, and others can follow. This way, operators can raise funds without overburdening subscribers,” he said.
In contrast, the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria has conditionally accepted the tariff adjustment, provided that service providers enhance their infrastructure and service quality within two weeks of the rollout.
“We urge our members to accept the tariff adjustment, but only if it results in better service. Otherwise, we will hold the authorities accountable,” said Sina Bilesanmi, President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria.
The NCC has emphasized that the tariff hike will bring improvements in network quality, customer service, and connectivity coverage. According to the commission, extensive consultations with stakeholders in both the public and private sectors informed the decision.
As February approaches, the implementation date for the new tariff, consumers and advocacy groups will be closely monitoring developments to ensure that the tariff hike does not disproportionately harm Nigerians. The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has revealed that while telecom operators were pushing for a 100% hike in tariffs, the government was only considering an increment of between 30% and 60%.
The impact of the tariff hike on Nigerians will be significant, with the average cost of phone calls increasing from N11 to N16.5 per minute. SMS charges will also rise from N4 to N6, and the cost of 1GB of data will jump from N350 to N525.
As the telecom industry adapts to the new tariff regime, it remains to be seen how consumers will respond to the price increases. Will the hike lead to a decline in call volumes and a shift towards alternative communication platforms, or will Nigerians absorb the increased costs? Only time will tell.
