A dramatic 50 per cent increase in telecom tariffs has ignited a storm of debate across Nigeria, as telecom operators raise concerns about the impact of multiple taxation, security issues, and other systemic challenges facing the sector. Despite the Nigerian Communications Commission (NCC) approving the tariff hike after 11 years of negotiations, many industry leaders argued that the increase is only a temporary solution and that deeper reforms are needed to address the sector’s long-standing issues.
Under the new policy, telecom operators are now allowed to adjust their prices within a defined range of N6.40 to N50, based on the NCC’s 2013 Cost Study. The tariff hike is set to take effect within the next week, but customers who recharge before the change will be spared from the immediate price increase. However, many in the industry believe this hike is merely a temporary solution, not the long-term fix needed to stabilize the telecom sector.
Tony Izuagbe Emoekpere, President of the Association of Telecommunications Operators of Nigeria (ATCON), expressed that the 50 per cent increase, while helpful, falls short of the industry’s needs. “A 100 per cent increase was our target,” he said. “This adjustment will help operators invest in infrastructure and improve service quality, but it doesn’t solve the underlying issues.”
Gbenga Adebayo, President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), echoed similar sentiments, emphasising the need for a broader approach to tackle challenges like multiple taxation, inadequate infrastructure, and the security of telecom facilities. “We are thankful for this progress, but we must address the larger systemic problems,” Adebayo said.
The increase comes in the wake of rising operational costs, with telecom companies such as MTN and Airtel facing up to 120 per cent increases in costs due to inflation, currency devaluation, and the rising cost of equipment. Telecom executives argued that without price adjustments, the sector will not be able to maintain service quality or infrastructure development.
NCC executive vice chairman Aminu Maida, has given telecom operators a three-month window to recover their costs, after which the focus will shift to service standards. “We remain committed to supporting Nigeria’s digital transformation agenda and driving inclusive growth,” said Karl Toriola, CEO of MTN Nigeria. “This tariff adjustment is necessary to sustain our investments in infrastructure and service quality.”
This tariff increase, however, comes at a time when Nigeria’s broader economic issues—such as inflation, currency devaluation, and the removal of fuel subsidies—are affecting businesses across all sectors, including telecommunications. The naira’s fluctuations and rising inflation have placed added pressure on telecom companies, with some CEOs voicing concerns about the sustainability of their operations.
While the tariff hike may offer some short-term relief, many in the telecom industry believe the real solution lies in deregulating the market. Under the current Nigerian Communications Act of 2003, telecom tariffs are tightly controlled, requiring operators to seek NCC approval for any price changes within a set range. This system, some argue, is inefficient and stifles flexibility.
“The ideal solution would be a fully deregulated telecom market,” said a senior telecom executive. “Allow market forces to set prices, giving operators the flexibility to adjust rates in real-time based on economic conditions. But that would require a comprehensive review of the Communications Act.”
Some stakeholders proposed a fixed approval timeline for tariff hikes—such as a 90-day approval window—for greater transparency and efficiency. If the NCC does not approve a proposal within that period, the changes would automatically be considered approved, allowing operators to respond more nimbly to market conditions.
For Nigerian students, affordable internet access is essential, as online learning has become a cornerstone of education. “I already spend over 30 per cent of my allowance on internet subscriptions,” said Leslie Alfred, a university student in Lagos. “If prices go up, I’m not sure how I’ll manage.” Many students across the country expressed similar concerns about how the tariff hike could affect their ability to access vital online resources.
Content creators, particularly those in the entertainment sector, are also concerned about the impact of rising data costs. “Affordable data is key to reaching our audience,” said Joy Iwuagwu, a popular skitmaker in Abuja. “If data prices rise, it’ll be harder to promote our work, and many creators might have to scale back.”
Telecom operators argued that these price hikes are necessary for their survival in an increasingly difficult business environment. Since 2013, tariff rates have remained unchanged, while inflation and the devaluation of the naira have sharply increased operational costs. These price adjustments are seen as a way to ensure that telecom companies can continue to provide high-quality service and maintain infrastructure.
According to the NCC, the 50 per cent tariff hike is intended to address the growing gap between operational costs and revenues, while also ensuring that service quality is not compromised. This decision, however, falls short of the 100 per cent increase that operators had requested.
Experts from the education and tech sectors have raised concerns about the broader consequences of the recent tariff hikes on Nigeria’s digital transformation goals. Dr. Ifeoma Eze, an ICT expert, cautioned that steep increases could exacerbate the digital divide, making it harder for students and workers to access essential services. “Affordable internet is crucial for achieving Nigeria’s digital economy objectives,” Eze explained. “If tariffs rise too high, it could impede progress in online learning, e-commerce, and digital skills acquisition.”
Consumer advocacy groups are also demanding greater transparency in the tariff adjustment process. Kunle Olawale of the Consumer Rights Network (CRN) emphasised the need for a more inclusive decision-making approach. “Tariff hikes should not be decided unilaterally,” Olawale argued. “There must be more dialogue between telecom operators and consumers to ensure a balance between profitability and affordability.” Some have even suggested that the government should provide tax breaks or subsidies to ease the financial burden on operators, without transferring the full cost to consumers.
The broader challenges facing the telecom industry, such as unreliable power supply, high infrastructure costs, and limited access to foreign currency, also need urgent attention. Many stakeholders believe that alongside tariff adjustments, these structural issues must be tackled to ensure the long-term sustainability of the telecom ecosystem.
The ongoing tariff debate highlights a larger issue—Nigeria’s ability to bridge its digital divide and ensure equitable access to connectivity. Dr. Felix Echekoba, a financial economist at Nnamdi Azikiwe University, remarked, “The decisions made today will determine whether digital access becomes a tool for empowerment or a privilege for the few.” He stressed that collective action is essential to ensure that Nigeria’s digital growth benefits all Nigerians, not just a select few.
Dr. Emeka Okengwu, CEO of AntHill Concepts Limited, added that while the tariff hike is necessary, the quality of services must improve in parallel. He suggested that Nigerians would be more willing to accept higher costs if they see improvements in service quality.
Meanwhile, Dr. Muda Yusuf, CEO of the Center for the Promotion of Private Enterprise (CPPE), acknowledged the potential impact on businesses but suggested that telecom services are more adaptable than other sectors like fuel. “Telecom services are more elastic than fuel,” Yusuf stated. “However, businesses need flexibility. The authorities should consider gradual price increases, rather than waiting until the system is on the verge of collapse.”
