As the Federal Government approves the first telecom tariff hike in over a decade, Nigerians are demanding that mobile network operators justify the increase by delivering substantial improvements in service quality.
For years, subscribers have called for better network quality, citing frequent call drops and slow data speeds.
They argue that if telecom companies are to benefit from higher tariffs, consumers should experience a tangible improvement in the services they are paying for.
However, telecom giants, including MTN Nigeria and Airtel, have defended the hike as essential to address economic challenges such as inflation, foreign exchange instability, and rising diesel prices.
The operators, which contribute nearly 20 per cent to Nigeria’s economy and serve over 150 million subscribers, have consistently emphasised the need to overhaul infrastructure, citing insufficient investments as a major obstacle.
Saturday PUNCH gathered that the sector is set to settle for a 40-50 per cent hike, with the Nigerian Communications Commission, the country’s telecom regulator, expected to make a public announcement soon.
Initially, telecom operators proposed a 100 per cent tariff increase.
The operators, which contribute nearly 20 per cent to Nigeria’s economy and serve over 150 million subscribers, have consistently emphasised the need to overhaul infrastructure, citing insufficient investments as a major obstacle.
Saturday PUNCH gathered that the sector is set to settle for a 40-50 per cent hike, with the Nigerian Communications Commission, the country’s telecom regulator, expected to make a public announcement soon.
Initially, telecom operators proposed a 100 per cent tariff increase.
However, Minister of Communications and Digital Economy, Dr Bosun Tijani, clarified after a stakeholders’ meeting with major operators in Abuja that while an increase is inevitable, it will not reach the proposed 100 per cent.
Had the government approved the telecom operators’ initial request for a 100 per cent tariff hike, subscribers would have faced a steep rise in costs—voice calls increasing from N11.00 to N22.00 per minute, SMS charges doubling from N4.00 to N8.00 per message, and the price of a 1GB data bundle skyrocketing from N1,000 to N2,000.
He argued that such a hike would have further strain on Nigerians already grappling with a declining purchasing power over the past two years.
The minister, who is currently leading Nigeria’s 90,000-kilometre fibre-optic broadband project in collaboration with the World Bank, stated that the Nigerian Communications Commission, a consumer-focused regulator, would issue comprehensive guidelines for implementing the adjusted tariffs.
On Thursday, the regulator convened a meeting in Abuja with consumer advocacy groups, including the President of the National Association of Telecommunications Subscribers, Adeolu Ogungbanjo, a long-time critic, who had previously threatened legal action if the NCC approved the tariff hike.
Meanwhile, telecom operators have stated that they are working towards fully implementing the new tariff before the end of the first quarter of this year.
“The tariff hike is a welcome development for the telecom industry, as it is something we have been advocating,” said Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria.
“It is expected that consumers will begin paying the new tariff before the end of Q1, and the process should be concluded and implemented by then.”
The Director of Publicity at the NCC, Reuben Mouka, declined to provide details on when the commission would make a public statement.
However, he stated via a telephone conversation, “The management will communicate when it’s time for it to do so.”
Subscribers’ demand
Speaking with Saturday PUNCH, NATCOMS President, Ogungbanjo, called for greater accountability and improved service standards from telecom operators.
He emphasised that a 40 per cent increase in tariff prices would not harm subscribers. Instead, it would enable operators to sustain their services and invest in necessary infrastructure upgrades.
Earlier, the subscriber group advocate had threatened court action, arguing that the proposed hike would disproportionately affect low-income subscribers and could hinder access to essential communication services.
The Secretary General of the Private Telecommunications and Communications Senior Staff Association, Okonu Abdullah, said the subpar network performance among telcos was primarily due to insufficient investment in the sector.
He argued that the issue had been exacerbated by the devaluation of the naira and removal of subsidies by the Federal Government in June 2023, further straining the industry’s capacity to deliver quality services.
“With the tariff hike, one would expect telcos to invest in upgrading their networks to meet consumer expectations, which, in many cases, they currently fall short of,” he stated.
“However, the reality is that these operators face frequent disruptions due to numerous fibre cuts. My advice is that telecom operators must remain vigilant and work closely with road contractors to prevent damage to critical infrastructure, such as underground cables.”
Telcos in 2023 suffered frequent fibre-optic cable cuts, leading to losses estimated at N35.4bn.
Industry reports revealed an alarming average of 43 cuts daily, with Airtel Nigeria alone recording 7,742 incidents within just six months.
To address these disruptions, President Bola Tinubu approved a critical infrastructure protection bill that criminalises the vandalism of telecom assets.
