FG Agrees to Tariff Hike For MTN, Airtel, Other Telcos as Minister Hints at New Rate

• The Nigerian government have finally agreed to increase tariffs on calls, SMS and data after pressure from telecom operators
• The minister of communications, innovation, and digital economy, Bosun Tijani, said the tariff would be increased but not by 100%
• He said the government will come up with comprehensive guidelines to protect Nigerian subscribers

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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian government have finally caved into the calls by telecommunication companies for a tariff hike.

The telcos have agitated for a 100% tariff increase, saying that tariffs have remained static in the sector for the last 10 years and have affected investment.

Minister rejects 100% tariff hike

The operators lamented that they face mounting operational challenges due to high inflation and the naira devaluation.

However, the minister of communications, innovations, and digital economy, Bosun Tijani, disclosed that tariffs will be increased but not by 100%.

Tijani disclosed this at the stakeholders’ meeting on Wednesday, January 7, 2025, saying that the telecom sector must establish proper regulations to ensure growth.

Operators and subscribers clash over tariff hike

According to TheCable, the Association of Licensed Telecommunications Operators Nigeria (ALTON) cautioned of service disruption if tariffs remained the same.

Also, the Association of Telecommunications Companies of Nigeria (ATCON) asked the Nigerian Communications Commission (NCC) to review call tariffs upwards by the first quarter of this year.

Nigerian subscribers, under the aegis of the National Association of Telecom Subscribers (NATCOMS), rejected the proposed hike and said it would worsen their living standards.

They say that telecom services would increase by 40%, meaning that subscribers would pay N15 per minute for calls from N11, N5.50 per SMS, from N4, and data bundles will increase from N1,000 per gigabyte (GB) to N1,400.

FG promises to protect subscribers

Meanwhile, at the stakeholders’ meeting, Tijani promised that the NCC would approve and announce the new tariff after due consultations and engagements.

“You have seen over the past weeks that some of these companies have been agitated to increase tariffs. They are requesting a 100 per cent tariff increase.

“But it will not be by 100 per cent; the NCC will soon come up with a clear directive on how we will go about it.

“We want to strike the balance as a government, to protect our people, but also protect and ensure that these companies can continue to invest significantly,” Tijani stressed.

NCC, telcos to invest proceeds on infrastructure development

Legit.ng earlier reported that telecom operators agreed to invest the proceeds from the proposed tariff hike into network infrastructure upgrades and enhance service delivery.

These are the conditions for operators as they expect final approval from the NNIC.

As part of the deal, NCC will supervise the implementation of these investments to ensure telcos comply with the requirements.