MTN, Airtel, Glo, Others Push For Tariff Hike, 1GB Data May Cost N560

Nigerians might face higher costs for telecom services, with 1GB of data potentially rising to N560 due to a proposed tariff adjustment.

Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, disclosed recently on national TV that telecom operators were asking for a 100% tariff hike, but the government was considering a more modest increase of between 30% and 60%.

He stated, “It should not be more than anywhere between 30 per cent to 60 per cent,” noting that the proposed increase is less than what operators had requested.

If the 60% increase is approved, phone call charges would rise from N11 to N17.6 per minute, SMS rates would increase from N4 to N6.4, and data costs would climb from N350 to N560.

Telecom companies have argued that rising inflation, the devaluation of the naira, and the challenging economic environment are pushing up operating costs.

MTN Nigeria’s CEO, Karl Toriola, mentioned that the 100% hike was necessary to sustain the industry, which has faced financial strain due to higher operational expenses.

He said, “The proposed tariff hike was necessary for the sustainability of the industry which has been facing significant financial pressures due to rising operational costs.”

However, Minister Tijani emphasized that such a sharp increase would negatively affect Nigerians who depend on telecom services.

He remarked, “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.”

Tijani stressed the government’s aim to find a balance between protecting consumers and allowing companies to continue investing in the sector.

Airtel Nigeria’s spokesperson, Femi Adeniran, also pointed out that the tariff adjustments were necessary to address rising costs and secure long-term sustainability for the telecom industry.

He added, “The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments. This is aimed to ensure the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers.”

The Nigerian Communications Commission (NCC) stated that while the operators had requested a 100% increase, it was unlikely to be granted, and a decision on the final percentage would be made after further consultations within the next two weeks.

Dr. Aminu Maida, the Executive Vice-Chairman of the NCC, noted, “The exact percentage would be announced within a week or two, following ongoing stakeholder consultations.”

Meanwhile, the National Association of Telecoms Subscribers (NATCOMS) opposed the increase, describing it as insensitive to consumers already facing economic hardship.

NATCOMS President, Adeolu Ogunbanjo, warned that the association would take legal action if the tariff hike goes through without considering alternative revenue sources.

He stated, “We plan to file a class-action lawsuit if the telecom operators proceed with the hike without first exploring alternative revenue-generating methods.”