Minister Reveals Telecom Price Hike May Rise by 30-60%, Not 100%

Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, has confirmed that telecom service prices are expected to increase by between 30 and 60 percent, a significant hike but far lower than the 100 percent requested by telecommunications companies. Speaking on a recent Channels TV program, the minister made it clear that the full 100 percent increase requested by telecom operators is not feasible.

Tijani explained that the government is considering a more moderate price adjustment, with the increase not exceeding 60 percent. “It shouldn’t be more than anywhere between 30 percent to 60 percent,” he said, addressing concerns about the potential impact on consumers. If the maximum increase of 60 percent is implemented, the average cost of phone calls would rise from N11 to N18.33 per minute, SMS charges would increase from N4 to N6.67, and the price of a 1GB data bundle would jump from N287.5 to N479.17.

The Need for Balance: Protecting Citizens and Industry Sustainability

The minister emphasized that a 100 percent increase in telecom prices would be detrimental to Nigerian citizens who rely heavily on telecom services for communication and business. “This sector is responsible for driving growth in our country, and it will be harmful to our people to allow the MNOs to increase by 100 percent,” Tijani stated, underlining the need to strike a balance between the industry’s survival and consumer affordability.

The proposed increase follows years of pressure from telecom companies who have long advocated for tariff hikes due to the severe operating challenges they face. These challenges include a 300 percent rise in operating costs over the past decade, alongside mounting losses since 2023, exacerbated by the significant devaluation of the naira.

Industry Pressure and NCC’s Role in Approving Tariff Adjustments

This announcement comes on the heels of a December discussion where Tijani agreed that tariff increases were necessary to ensure the sustainability of the telecom industry. MTN Nigeria’s CEO, Karl Toriola, also acknowledged the companies’ request for a 100 percent increase but stated that the Nigerian Communications Commission (NCC) would likely not approve such a drastic hike due to the current economic climate.

“We are hopeful and optimistic that the realities are staring us in the face, and the right decision will be taken for the sustainability of the industry,” Toriola said, highlighting the delicate balance between industry needs and economic realities.

As discussions continue, Nigerians await the final decision on the proposed price hikes and how it will affect their daily telecom usage.