Expectations from the Approved 50% Telecom Tariff Hike in Nigeria

The Nigerian Communications Commission (NCC) has approved a 50% increase in telecom tariffs, raising call costs to N16.5 per minute.

The new rates announced are aimed at addressing rising operational expenses in the sector.

According to NCC data, Nigerians made 205.3 billion minutes of outgoing calls in 2023. With the tariff increase, telecom companies could generate over N6.74 trillion in revenue if call volumes remain steady. The 2023 data is being used in this report due to the unavailability of the 2024 data yet.

MTN, the largest telecom operator, is expected to benefit the most from this increase. They are expected to earn over N4 trillion. Airtel and Glo are expected to generate N1.78 trillion and N536.2 billion respectively.

Smaller operators like Smile and Ntel will see modest gains, with expected earnings of N5.7 billion and N13.1 billion respectively. 

In addition to calls, SMS rates will increase from N4 to N6 per message. Based on 2023 data, the telecom industry could earn N137.84 billion from SMS traffic alone if usage patterns remain unchanged.

Despite the growth of internet-based messaging platforms, voice calls continue to be a major revenue source. Consumers may increasingly turn to alternatives like WhatsApp and Telegram to avoid higher charges.

The NCC defended the increase, citing inflation and rising costs.

However, consumer advocacy groups have criticized the move, warning it could burden Nigerians and calling for legal action if concerns are not addressed.

Stakeholders argue that the hike should lead to improvements in network infrastructure and service quality. They have urged telecom operators to justify the increase with better customer experiences.

The government has assured the public that the tariff hike is necessary to sustain the sector. Officials say it balances industry needs with consumer protection, though public resistance remains strong.

As the new rates take effect, our focus at Asiwaju Media will be on how telecom companies adjust their operations and whether Nigerians will alter their communication habits in response to higher costs. Expect more reports on this.