Nigerian Communications Commission Approves Tariff Hike Amid Economic Hardship

The Nigerian Communications Commission (NCC) has approved a tariff increase for telecommunications services, a decision that adds to the financial burden on Nigerians already struggling with rising living costs.

In a statement released on Monday, Reuben Muoka, NCC’s Director of Public Affairs, confirmed the approval, citing the commission’s regulatory authority under Section 108 of the Nigerian Communications Act, 2003 (NCA). The decision comes after persistent demands from telecommunications companies grappling with escalating operational costs.

The announcement follows a recent statement by Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, during a stakeholders’ meeting with Mobile Network Operators (MNOs) in Abuja. Tijani emphasized the government’s commitment to balancing consumer protection with the financial sustainability of telecom operators, ensuring the sector’s long-term viability.

According to The Cable, the NCC has capped the tariff increase at 50 percent after reviewing proposals submitted by telecom operators. Speculations suggest that call rates may rise from ₦11 to ₦15.40 per minute, SMS charges from ₦4 to ₦5.60, and the cost of 1GB of data could climb to at least ₦1,400.

Telecom giants such as MTN Nigeria and Airtel had initially proposed a 100 percent hike, citing surging operational costs fueled by inflation, volatile exchange rates, and rising energy prices. These operators warned of potential service disruptions if tariffs remained unchanged, arguing that the current rates were unsustainable.

Adding to the financial strain, the government recently proposed a 5 percent excise duty on telecommunications, gambling, and gaming services under the “Nigeria Tax Act” bill submitted to the National Assembly on October 4, 2024. If passed, the bill would impose excise duties on postpaid and prepaid telecom services regulated by the NCC, alongside other services.

The tariff hike comes at a time of severe economic hardship for Nigerians. Skyrocketing fuel prices have driven up transportation, food, and other essential costs, leaving many households struggling to make ends meet. The additional financial burden of increased telecom tariffs is expected to exacerbate the already dire cost-of-living crisis.

Critics argue that the timing of the tariff increase is insensitive, given the current economic challenges facing the country. “This decision will only deepen the financial struggles of ordinary Nigerians,” said a consumer rights advocate who spoke on condition of anonymity.

Meanwhile, telecom operators have defended the increase, describing it as necessary to maintain service quality and ensure the industry’s sustainability. “The rising costs of operations, particularly energy and foreign exchange, have made it impossible to maintain current rates,” a representative of a leading telecom firm explained.

As Nigerians brace for higher telecom costs, many are questioning the government’s priorities in addressing the country’s economic challenges. The tariff hike has sparked widespread concern about its potential impact on digital access, a critical driver of economic growth and innovation.

With the new rates set to take effect soon, consumers and businesses alike will face tough choices in managing their communication expenses, further highlighting the growing tension between affordability and sustainability in Nigeria’s telecommunications sector.