Expect Telcos tariff hike to go as high as N560/1GB
Expect Telcos tariff hike to go as high as N560/1GB
Nigerians may soon experience an increase in the cost of telecom services, with the price of 1GB of data potentially rising to N560 under a proposed tariff adjustment.
The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, during a recent appearance on national TV, revealed that while telecom operators were pushing for a 100 per cent hike in tariffs, the government was only considering an increment of between 30 and 60 per cent.
“It should not be more than anywhere between 30 per cent to 60 per cent,” he said, noting that the proposed increase is less than what operators had requested.
If a 60 per cent increase is approved, the average cost of phone calls will rise from N11 to N17.6 per minute, SMS charges will increase from N4 to N6.4, and the cost of 1GB of data will jump from N350 to N560.
Telecom operators have been clamouring for tariff hikes, citing escalating operating costs due to inflation, naira devaluation, and an unstable economic environment.
MTN Nigeria revealed that telecommunications companies were seeking a 100 per cent tariff increase, but it remains uncertain whether the Nigerian Communications Commission—the telecom regulator, will approve the proposal.
The disclosure was made by the Chief Executive Officer of MTN Nigeria, Karl Toriola, who 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, Tijani insisted that a 100 per cent increase would be detrimental to citizens who rely heavily on telecom services.
“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,” he remarked.
The minister explained that the government was focused on striking a balance between protecting Nigerians and ensuring that telecommunications companies could continue to invest significantly in the sector.
He also stressed the need for proper regulations to guarantee sustainable growth.
Speaking on behalf of Dinesh Balsingh, the CEO of Airtel Nigeria, during a meeting with the minister, Airtel media spokesperson, Femi Adeniran, said the proposed tariff adjustments were necessary to offset rising operational and capital costs.
He added that the adjustments were aimed at ensuring the long-term sustainability of the sector while delivering benefits to consumers.
“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,” he said.
The Executive Vice-Chairman of the Nigerian Communications Commission, Dr Aminu Maida, stated that while operators had requested a 100 per cent tariff increase, it was unlikely to be approved.
He said the exact percentage would be announced within a week or two, following ongoing stakeholder consultations.
In a related development, the National Association of Telecoms Subscribers, rejected the proposed increase in telecommunication tariffs, describing the plan as “insensitive” and a further burden on consumers already grappling with economic hardship.
NATCOMS President, Adeolu Ogunbanjo, said the group planned to file a class-action lawsuit if the telecom operators proceed with the hike without first exploring alternative revenue-generating methods.
