Nigeria’s telecommunications sector is bracing for a significant price adjustment, as Communications Minister Bosun Tijani announces a potential 30-60% increase in service rates, rejecting the 100% hike requested by telecom operators.
Speaking during an interview monitored by Apples Bite Magazine, Tijani emphasized that the more modest increase aims to balance industry sustainability with consumer welfare. Under a maximum 60% increase scenario, call rates would rise from N11 to N18.33 per minute, SMS charges from N4 to N6.67, and 1GB data bundles from N287.5 to N479.17.
“This sector is responsible for driving growth in our country,” Tijani stated, explaining that a 100% increase would be detrimental to citizens who rely heavily on telecom services.
The announcement comes amid mounting pressure from telecommunication companies, who have faced challenging operating conditions, including a 300% spike in operating costs over the years. The recent naira devaluation in 2023 has further strained their operations, leading to significant losses.
MTN Nigeria CEO Karl Toriola acknowledged that while operators sought a 100% increase, they understand the Nigerian Communications Commission (NCC) must consider the current economic climate. “We are hopeful and optimistic that the right decision will be taken for the sustainability of the industry,” he noted.
The minister had previously indicated in December that tariff increases were necessary for the industry’s sustainability, marking a significant shift in pricing policy after a decade of telecom companies’ advocacy for rate adjustments.
Seunmanuel Faleye is a brand and communications strategist. He is a covert writer and an overt creative head. He publishes Apple’s Bite International Magazine.
