Telcos May Raise Call, SMS, and Data Tariffs in Early 2025 Amid Economic Challenges

Nigerians could face higher charges for calls, SMS, and data services starting early 2025, as the federal government considers approving a long-awaited tariff review. Telecom operators have been advocating for a price adjustment, citing financial strains that have worsened over the years.

Last Tariff Review Was Over a Decade Ago

The current telecom tariffs were last reviewed 11 years ago, despite significant economic changes since then. The National Association of Telecommunications Subscribers (NATCOMS) recently urged the Nigerian Communications Commission (NCC) to approve a marginal 10% increase to help telecom companies cope with rising operational costs, rather than resorting to service cutbacks.

Major Telcos Demand Urgent Action

Telecom giants such as MTN, Glo, Airtel, and 9mobile have repeatedly called for a tariff increase to sustain operations. MTN Nigeria’s CEO, Karl Toriola, issued a stark warning in October 2024, stating that the company, which serves about 78 million subscribers, might be forced to shut down if tariffs remain unchanged.

During a facility tour in Lagos, Toriola emphasized the industry’s struggles with surging diesel costs, used to power base stations, alongside a devalued naira and high inflation. MTN, once a leading corporate taxpayer in Nigeria, reported a loss of ₦519.1 billion in the first half of 2024 due to foreign exchange and inflationary pressures.

“If the tariff doesn’t go up, we will shut down,” Toriola cautioned, underlining the severity of the situation.

Challenges Across the Industry

9mobile’s CEO, Obafemi Banigbe, echoed similar concerns, highlighting the severe impact of naira devaluation and other economic pressures. He noted that tower companies (towercos) have raised prices by over 300%, compounding issues like rising diesel costs, infrastructure maintenance, vandalism, and security expenses.

Banigbe stressed that without a tariff adjustment, the survival of the telecom industry is at risk, as even government-imposed customs charges have significantly increased.

Looking Ahead

If approved, the tariff hike would be the first in over a decade, marking a significant shift in Nigeria’s telecommunications landscape. The NCC is yet to make a formal announcement, but industry stakeholders insist the adjustment is crucial to sustaining telecom services in the country.