Telcos Seek FG Approval For 40% Tariff Hike

Telecom operators in Nigeria, including MTN, Glo, Airtel, and 9Mobile, are seeking the Federal Government’s approval to increase tariffs by up to 40%, citing soaring operational costs driven by inflation.

A top official of one of the telecom companies, who pleaded anonymity, revealed that the Nigerian Communications Commission might grant the approval for the tariff hike by the first quarter of 2025.

“We strongly hope that our approval to increase tariffs has been granted by the federal government. We hear they will allow us to do some upward review of tariffs by the first quarter of 2025,” the official said.

ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!

The proposed tariff hike would see the price of a 1GB data bundle increase from N1,000 to at least N1,400, while call and SMS rates would also rise.

According to industry sources, the price of a one-minute call may increase from N11 to N15.40, while SMS charges may rise from N4 to N5.60.

The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, acknowledged the need for price adjustments, stating, “We think there may be a need for that.”

The telecom operators have been lobbying for a tariff hike for over a decade, citing rising operational costs.

READ ALSO: Telcos Lost 12.3m Internet subscribers in 2021 – NBS

MTN Nigeria reportedly incurred a N137 billion loss in 2023, with losses expanding to N514.9 billion in the first nine months of 2024.

Airtel Africa also reported losses of $89 million in Financial Year 2024, largely driven by challenges in Nigeria.

The President of the Association of Licenced Telecommunication Operators of Nigeria, Gbenga Adebayo, argued that cost-reflective prices would incentivize investment and improve quality in the long run.