Telecommunication operators have reiterated that asking for tariff adjustments was the last resort in their effort to survive and continue to provide services to millions of Nigerians and businesses.
Over the weekend, representatives of MTN Nigeria, Airtel and 9mobile joined by the leaders of the Association of Licensed Telecommunication Operators of Nigeria (ALTON) had a no-holds-barred session with a cross-section of media personalities, and argued strongly that the 50% tariff adjustment was necessary to save the industry from total collapse.
NCC approved 50% tariff adjustment
Recall that the industry regulator – the Nigerian Communications Commission (NCC) – on January 20, 2025 announced the approval for upward review of telecom tariffs in the West African country.
The Commission led by Dr. Aminu Maida, EVC/CEO of NCC, said the approval was in pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators
NCC said it “will be granting approval for tariff adjustment requests by Network Operators in response to prevailing market conditions.”
The adjustment, according to a statement by Reuben Muoka, the director, Public Affairs at NCC, said the tariff increase capped at a maximum of 50% of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.
“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.
NLC disagrees with NCC and Telcos
However, the announcement attracted criticisms in several quarters, especially among subscribers.
Leading the opposing voices is the Nigeria Labour Congress’s (NLC). The body also plans to protest against the 50% telecom tariff increase.
NLC argued that the increase would add to the hardship faced by Nigerians, especially when they are paying more for food, electricity, petrol and others.
CHRMG tackles NLC
The NLC’s argument attracted the attention of the Coalition of Human Rights Monitoring Groups (CHRMG) which condemned the NLC’s planned protest, describing it as “misguided and not in the public interest.”
The CSOs said the tariff hike, approved by the NCC is a necessary measure to prevent the telecom sector from collapsing.
According to Dr. Gabriel Agibi, President of the group, with the current inflation rate at 34.8%, a nearly 300% increase from 8.5% in 2013 [sic: the last time telecoms tariffs were reviewed], the tariff adjustment is essential to reflect economic realities.
Agibi said the NCC’s decision was made in good faith, taking into account ongoing industry reforms that will positively influence sustainability.
He added that the tariff hike is also crucial in ensuring that Nigeria’s telecom sector remains competitive with international standards.
Tariff adjustment is necessary to save industry from collapse – ALTON
According to ALTON Chairman, Engr, Gbenga Adebayo, NCC made the vital decision to allow Telecom companies to increase their tariffs for the first time in more than 12 years.
“It was a brave decision that should be recognised and commended”.
“All the customers of our member operators are understandably disappointed that they will have to pay more to stay connected. We recognise that. We know that Nigerians have been through a series of even more substantial price increases in other sectors like fuel and power.
“That is why it is so important for us to set out why the tariffs need to go up, how the revenue from the price increases will be used and how long it is going to take us to deliver the improvements that our customers will be able to see and appreciate”.
Adebayo who argued there’s no such thing as “too big to fail” in the telecoms industry, further reminded those kicking against the price adjustments that telecom sector is capital-intensive hence it requires constant investment to maintain the infrastructure that operators use to deliver connectivity, “ensuring that we can deliver the quality of service that our customers demand and continue to upgrade to the latest technologies like 5G”.
…a step to get Telecom Sector out of the ‘sickbed’ – Okigbo
Speaking during the session over the weekend, Tobe Okigbo, chief corporate services and sustainability Officer, MTN Nigeria, said:
“We are not talking about profitability right now; we will get there eventually. Our first priority is to get out of this sickbed. We are talking about survival because this industry is central to national development in the digital age. Imagine how backward we would become as a nation if the telecoms industry were to collapse.
“What are the alternatives? Telecoms services are critical to the growth and sustainability of key sectors like banking, healthcare, education, entertainment, and commerce. Is there any industry that doesn’t rely on telecoms services?
“Some of us are advocating for the sustainability of this industry not just because we work in the sector, but also because we have witnessed its evolution and growth. Now, we are seeing a decline; even before reaching our peak!
“Every sector that has collapsed or declined in Nigeria did not get to that point overnight; it happened gradually. We must not let the telco industry collapse.
“Let’s all do our part to keep this vital industry alive. With the right pricing, telcos will be able to ramp up investment that will enable them to provide even better quality services. We expect customers and regulators to hold us accountable. We all have a stake in the telecoms industry.
“It’s our industry. Yes ‘our’ because it belongs to all of us. Let’s not watch it die because we want to pay less, which will eventually suffocate the industry till it will no longer be able to breathe”, he said.
Nodding in agreement, Femi Adeniran, the director, Corporate Communications& CSR at Airtel Nigeria, re-emphasized the need to protect the ‘ostrich that lays golden eggs.
According to him, telecommunications industry provides infrastructure for other sectors hence the services are not just about phone calls or browsing the internet; “it powers vital sectors like education, healthcare, banking, and public safety, and deserves to breathe too”.
He said the industry is even committed to play greater roles towards deepening Nigeria’s digital economy as a critical pillar of the country’s national development strategy.
…a step towards long-term sustainability
Kenechukwu Okonkwo, the director of Product Innovation & Business Development at 9mobile, also commended the applauded the Federal Government for approving a 50% tariff adjustment, which he described as a vital initiative aimed at addressing persistent challenges in Nigeria’s telecom sector.
“This decision, reached after extensive deliberations, marks a significant step towards ensuring the long-term sustainability of the industry by enabling the necessary investments to enhance service quality (QoS) for consumers nationwide”, he said, and pledged 9mobile’s commitment to offer even improved services to the customers.
Techeconomy gathered that telcos may start adjusting their tariffs (upward) in the coming weeks.
Meanwhile, representatives of Globacom, one of the ‘big four’, where conspicuously absent at the session on Saturday.
