Nigerians are set to pay more for their telecom services, including calls and data, as the Nigerian Communications Commission (NCC) has approved a 50% increase in telecommunications tariffs. This decision comes at a time when the country is grappling with rising inflation, economic uncertainty, and a depreciating naira, raising serious concerns about its impact on ordinary citizens and businesses alike.
The new tariffs will see the minimum call rate increase to ₦15.40 per minute, while the cost of sending an SMS will rise to ₦5.60 per message. Additionally, the price of 1GB of data will increase by 40% from the current average of ₦750. These adjustments, according to telecom operators, are necessary to offset mounting financial losses driven by inflation, currency devaluation, and the rising cost of network maintenance.
This increase is not happening in isolation—it comes at a time when many Nigerians are already struggling with the high cost of living. With over 60% of the population living below the poverty line, the hike could make telecom services less accessible, deepening the country’s digital divide.
A major concern is whether this tariff increase will trigger a chain reaction across other sectors. Many businesses, particularly in the digital economy, rely heavily on affordable internet access. Higher telecom costs could mean increased operational expenses, which may be passed on to consumers in the form of higher prices for goods and services.
Additionally, the hike could have labour market implications. Many Nigerians rely on remote work, online businesses, and digital platforms for their livelihoods. With internet costs soaring, small business owners, freelancers, and startups may struggle to stay afloat, potentially leading to job losses and wage stagnation. Employers may also be forced to increase wages to compensate for the rising cost of communication and digital tools, but in an already fragile economy, this may not be sustainable.
Unsurprisingly, many Nigerians have reacted with frustration, describing the tariff increase as yet another burden on struggling households. Some have taken to social media to call for government intervention, while others fear a reduction in telecom service usage, particularly among low-income earners.
The Nigerian Labour Congress (NLC) has strongly opposed the hike, warning that it could further erode the purchasing power of workers without a corresponding improvement in service quality. The NLC has even called for a boycott of telecom services in protest, urging the government to reconsider its approval of the tariff adjustment.
Amidst these developments, MTN Nigeria recently implemented a 200% increase in its data prices, which was met with widespread backlash. Initially, the company denied the price hike, only to later confirm and apologize for the error. The sudden jump in prices saw, for instance, the cost of a 15GB weekly plan surge from ₦2,000 to ₦6,000, before being adjusted to 7GB for ₦3,000 following public outcry.
The removal of affordable hourly, quarterly, and yearly plans has further compounded frustrations, leaving many customers with no choice but to opt for costlier monthly bundles. The introduction of expensive short-term plans has made data accessibility a major challenge, especially for students, small businesses, and remote workers who depend on stable and affordable internet connectivity.
The Government’s Stance and the Way Forward
The Nigerian government has acknowledged the challenges within the telecom sector and has outlined infrastructure development plans to improve connectivity. This includes the rollout of 90,000 kilometers of fiber-optic networks and the construction of telecom towers in underserved areas. However, critics argue that without addressing the root causes—such as the cost of doing business, multiple taxation, and foreign exchange volatility—such efforts may not translate to immediate relief for consumers.
Experts suggest that the government and the NCC should explore alternative regulatory measures that balance the sustainability of the telecom sector with affordability for consumers. Potential solutions include tax reliefs for telecom operators, better spectrum management, and incentivizing local manufacturing of telecom equipment to reduce reliance on costly imports.
The 50% increase in telecom tariffs, coupled with MTN’s controversial price adjustments, presents a difficult challenge for Nigerians. While telecom operators argue that the hike is necessary for industry sustainability, the impact on consumers, businesses, and the broader economy cannot be ignored.
With pressure mounting from labour unions, advocacy groups, and the general public, the government may need to revisit its regulatory stance to strike a balance between industry needs and consumer protection. If left unaddressed, the rising cost of telecom services could widen inequality, stifle digital innovation, and place even more strain on an already struggling economy.
The question remains: Will Nigerians be forced to bear this burden, or will the government step in to provide a much-needed intervention?
