Telcos tariff hike: Reps demand reversal as new pricing begins

Nigerian telecommunications operators have began implementing the long-awaited 50 per cent tariff hike following regulatory approval from the Nigerian Communications Fee as lawmakers moved to halt the rollout, citing financial hardship.

The Home of Representatives on Tuesday directed the telecom regulator and the Minister of Communications, Innovation, and Digital Economic system to droop the tariff enhance, arguing that Nigerians can not afford larger telecom prices amid rising inflation and the elimination of gas subsidies.

The tariff hike, which had been cleared by the NCC, was scheduled to take impact nationwide beginning Monday. Whereas MTN, the nation’s largest telecommunications supplier, had already began implementing the revised charges as of Tuesday, different key gamers—Glo, Airtel, and 9mobile—had but to launch their new pricing construction.

A senior MTN govt, who requested anonymity resulting from lack of authorisation to talk on the matter, confirmed the event. “Sure, we’ve began updating our tariffs. Nevertheless, this course of is gradual, and we haven’t accomplished it for all merchandise but.”

The tariff adjustment primarily impacts MTN knowledge plans. For instance, the 1.5GB month-to-month plan, beforehand priced at N1,000, has now been changed with a 1.8GB plan costing N1,500.

Equally, the 15GB plan has elevated from N4,500 to N6,500, whereas the 20GB plan now prices N7,500, up from N5,500. Bigger knowledge bundles have seen even steeper hikes, with the 1.5 terabyte 90-day plan growing from N150,000 to N240,000, and the 600GB 90-day plan rising from N75,000 to N120,000.

The supply added, “From tomorrow (Wednesday), costs of different MTN merchandise will probably be adjusted. We’re doing it in phases. Not all the costs went up, some didn’t change, some are nonetheless under 50 per cent.”

A senior official at Globacom, who was not authorised to talk on the matter, confirmed that whereas the corporate had not but rolled out the brand new tariffs, there was a chance of an replace earlier than the shut of enterprise on Tuesday.

An govt at Airtel, who additionally spoke beneath the situation of anonymity, indicated that the tariff hike had been carried out throughout the {industry}.

“So far as I do know, each operator has commenced. That is an industry-wide choice, not an operator choice. Our costs have by no means been uniform, and the choice was made collectively on Monday. Each operator will need to have begun, even when the rollout isn’t but totally accomplished,” the manager informed The PidomNigeria.

The Home of Representatives intervention got here after a movement of pressing public significance was raised by a member of the Peoples Democratic Party from Bayelsa State, Oboku Oforji throughout Tuesday’s plenary session.

The movement, titled “Want for the Nigerian Communications Fee to not approve the upcoming hike within the telecommunications tariffs,” sought to halt the tariff enhance.

Oforji argued that whereas telecommunications corporations justified the tariff hike by citing rising operational prices and the necessity for improved service supply, the timing was notably problematic given the financial hardship many Nigerians face.

He famous that inflation, which hit a file 34.6 per cent in November 2024, and the elimination of gas subsidies had already positioned important monetary pressure on residents.

“The Home is conscious that telecom operators have been advocating for this hike for over eleven years,” Oforji mentioned.

“Nevertheless, the Nationwide Affiliation of Telecoms Subscribers has rejected the proposed enhance, describing it as insensitive and an extra burden on shoppers who’re already grappling with financial challenges and poor community service supply.”

Oforji emphasised that the telcos should first handle long-standing points associated to poor community service earlier than implementing a value enhance. He warned that the tariff hike would solely exacerbate monetary struggles for a lot of Nigerians, deepening poverty and widening inequalities.

“Inexpensive connectivity is a should for progress in crucial sectors like digital banking, schooling, healthcare, agriculture and e-governance,” stressing that “casual sector staff who rely on reasonably priced cellular knowledge to entry gig work alternatives might discover it tougher to remain linked.”

He additional argued that small companies “which rely closely on reasonably priced telecommunication for operations, advertising and marketing, and buyer engagement, will face further monetary burden.”

Oforji mentioned, “It’s estimated {that a} 10 per cent enhance in telecommunications prices would scale back small enterprise profitability as much as 7 per cent, probably resulting in the closure of companies.”

One other lawmaker from Edo State, Billy Osawaru, referred to as on the service suppliers to first enhance the standard of their companies earlier than developing with a hike in tariff.

“Why is it that when issues go flawed on this nation, the poor folks should endure? First, it was the electrical energy tariff, now it’s the flip of the telecom corporations. Nigerians should take pleasure in these companies.

“Within the developed world, individuals are not used to carrying two cell phones however that is the apply right here. The pondering is that if there is no such thing as a service in a single, you is perhaps fortunate with the opposite one. I imagine that this enhance in tariff ought to wait till companies enhance,” he mentioned.

Business stakeholders, notably the Affiliation of Licensed Telecommunications Operators of Nigeria, have defended the tariff enhance, arguing that it’s critical for the long-term sustainability of the sector.

The Chairman of ALTON, Gbenga Adebayo highlighted that sustained underinvestment within the telecommunications sector may result in an irreparable decline in companies.

“I perceive {that a} value assessment is important for the survival of the telecom sector,” Adebayo mentioned on a name. “None of us can afford to see this sector collapse.

The lack to get better investments within the telecom {industry} has made sustainability more and more troublesome. When there’s extended underinvestment, it turns into just about unimaginable to get better.”

Whereas acknowledging the general public’s issues about inflation and the excessive value of knowledge, Adebayo pressured that the tariff hike was pushed by the pressing have to hold the {industry} afloat.

He expressed confidence that lawmakers, after totally assessing the state of affairs, would come to know the need of the adjustment.

“The general public’s issues are legitimate, however this tariff enhance is crucial for sustaining the sector,” he mentioned.

The NCC introduced the tariff hike on January 20, citing rising operational prices and the necessity to make sure the long-term sustainability of the telecommunications sector.

The fee, via its Director of Public Affairs, Reuben Muoka, underscored that the choice aligns with its regulatory mandate beneath Part 108 of the Nigerian Communications Act, 2003.

Nevertheless, the Nationwide Affiliation of Telecommunications Subscribers voiced its opposition, threatening authorized motion in opposition to the authorized tariff enhance. NATCOMS argued that the hike be reversed to 10 per cent.

The Nigeria Labour Congress had additionally kicked in opposition to the rise, calling for the hike to be reversed to 5 per cent. The union led by its President, Joseph Ajaero threatened a protest on February 4, 2025, which finally didn’t maintain resulting from a number of interventions.