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The price of phone calls, data, and SMS will cost 50 percent more following the approval of tariff hikes by the Nigerian Communications Commission on Monday.
This will push the floor price (minimum acceptable price) of calls to N9.6 per minute from N6.40 and make the ceiling price (maximum acceptable price) of calls to N50; the cost of SMS to N6 from N4; and the cost of 1GB of data to N431.25 from N287.5. The average price of calls will be N16.5/minute from N11.
“The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” the NCC said in a statement signed by its director of Public Affairs, Reuben Muoka.
This is less than the 100 percent that telecommunication firms asked for and within the range that Bosun Tijani, the minister of Communications, Innovation, and Digital Economy, revealed last week. According to the minister, the price of telecom services would go up by 30 and 60 percent.
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 devaluation of the naira have further compounded telcos’ woes, fueling their requests for tariff hikes.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators,” the NCC explained.
The tariff hike aims to address the gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised, it stated. It noted that the adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study and will be implemented in adherence to its recently issued Guidance on Tariff Simplification, 2024.
The commission highlighted that these adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.
Earlier, telecom companies disclosed that a projected tariff hike would be tied to their commitment to increase investments in network infrastructure. Between January and September 2024, MTN Nigeria’s core capital expenditure (capex) dropped 27.79 percent to N217.64 billion, while Airtel’s capex fell 36.59 percent to $149 million.
source: businessday.com
