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ABUJA, Nigeria - The House of Representatives has urged Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, along with the Nigerian Communications Commission (NCC), to halt the planned rise in telecommunications tariffs until there is an improvement in service quality.
This decision came after Hon. Obuku Oforji, who represents Yenagoa/Kolokuma/Opokuma Federal Constituency of Bayelsa State, presented a motion of urgent public importance during Tuesday's plenary session.
During the presentation, Oforji referred to comments made by Minister Tijani following a stakeholders' meeting with Mobile Network Operators in Abuja on January 8, 2025.
Tijani indicated that telecommunications tariffs would be increased soon, pointing to ongoing talks and pressure from telecom firms pushing for tariff hikes of as much as 100 percent.
However, he noted that although there would be an upward adjustment, it would not reach that full 100 percent as suggested. He further mentioned that the NCC would announce and approve the new tariff structure at a later time.
A lawmaker revealed that telecommunications companies are defending their proposed tariff increases by highlighting the rising costs of investment, the need for better network infrastructure, and the growing demand for digital services across important areas like education, banking, and healthcare.
Nevertheless, Hon. Oforji voiced concerns about this initiative, observing that the National Association of Telecoms Subscribers has vehemently opposed the proposed increase, labeling it as insensitive and an added burden for consumers already facing economic difficulties and inadequate network service delivery.
“It is vital for telecommunications companies to improve their service delivery, especially by tackling ongoing network problems that Nigerians have suffered from for years, before contemplating any tariff hikes,” he said.
He additionally warned that the widespread repercussions of such price increases could exacerbate financial strain on the average citizen, obstruct the nation’s goal of leveraging technology for economic recovery, intensify poverty, and exacerbate existing inequalities, particularly disadvantaging lower-income families.
“Affordable connectivity is essential for advancements in critical sectors such as digital banking, education, healthcare, agriculture, and e-governance. Numerous informal sector workers depend on low-cost mobile data for accessing gig work opportunities, and a price hike could make it more challenging for them to remain connected,” he remarked.
Expressing concern over the potential impact of escalating telecommunications costs, Oforji lamented the financial pressure it may impose on small enterprises.
“It’s disheartening to contemplate the challenges small businesses will encounter. Many rely on affordable telecommunications for their daily operations, marketing, and customer engagement. An increase in costs will only compound their financial strain,” he stated.
He further cautioned about the economic repercussions of a possible tariff increase. “Just imagine if a 10 percent hike is sanctioned; it is estimated that such a rise could diminish small business profitability by as much as 7 percent, possibly leading many to shut down,” he added.
He urged stakeholders to reflect on the wider economic implications and prioritize policies that guarantee affordable and accessible telecommunications for everyone.
Meanwhile, MTN Nigeria has initiated the implementation of the tariff hike authorized by the Nigerian Communications Commission (NCC) on January 24, 2025, surprising many subscribers with a significant increase in data tariffs. This follows the NCC's approval for a tariff rise for telecommunications companies, citing current market circumstances.
The company confirmed this in a response on its X (formerly Twitter) account. They stated, “Y’ello! Thanks for stopping by. We apologize for any inconvenience and delayed response. A price increase has been implemented to enhance our services and serve you better, which is why you are seeing the updated amount.” This comes after the NCC sanctioned a tariff increase for telecommunications firms.
The NCC’s spokesperson, Reuben Mouka, announced the decision in January, explaining that the approval aligns with the NCC’s regulatory powers under Section 108 of the Nigerian Communications Act of 2003. According to Mouka, the adjustment allows for a maximum increase of 50 percent on existing tariffs, a compromise from the over 100 percent increase initially sought by several network operators.
“The adjustment, capped at a maximum of 50 percent of current tariffs, though less than the over 100 percent requested by some network operators, was determined considering the ongoing industry reforms that will positively influence sustainability,” Mouka stated. Following this approval, it was noted that MTN has raised the prices of data bundles by approximately 200%. While a 50% increase was sanctioned, it appears that not all tariffs have risen by the same margin.
According to the new pricing structure, the 1.8GB monthly plan, which was previously priced at N1,000, has increased to N1,500, adhering to the 50% limit. The 15GB data bundle, formerly costing N2,000, has now risen to N6,000. Similarly, the 1.5TB plan has surged from N150,000 to N240,000. Other plans impacted include the 100GB bundle, now priced at N25,000 for 90GB, up from the prior N20,000 for 100GB, and the 600GB bundle, which has increased from N75,000 to N120,000 for 480GB.
The price increase has triggered dissatisfaction among subscribers, who criticize the tariff hike as uncompassionate in light of the prevailing economic difficulties in the country. According to the National Bureau of Statistics (NBS), the inflation rate in the country stands at 34.80%. Additionally, food inflation rose to 40% in November 2024, up from 32% in 2023, indicating that many services compete with basic necessities like food.
However, the economic climate is also impacting telecommunications companies, which have suffered billions in losses due to foreign exchange volatility amid the naira's instability. MTN reported a loss of N656 billion in 2024, while Airtel experienced substantial losses in 2023. One network user, identified only as Daniel, mentioned that after purchasing airtime for N1,000, he received a notification indicating that a recharge of N1,000 was successful. The message outlined the local rates, noting: Voice @30k/sec, Data @N3.07/MB, and SMS @N6/SMS. Users were directed to the network’s website for international and roaming rates.
Many have taken to social media to voice their discontent with the new prices, urging the company to reconsider the increase. One X user, Khan, wrote: “I think it’s high time we boycotted MTN. Their network is abysmal, and their data plans are a rip-off. The 15GB package doesn’t even last three days. During the protest, they deliberately sabotaged their own network to prevent it from happening.”
Another user, @AfrokonnectNG, stated: “This sudden price jump from N2,000 to N6,000 for 15GB is outrageous! How are people expected to manage such an extreme increase? Internet access is vital for work, education, and connectivity, yet it’s being treated like a luxury.”
Another commenter, Silva, stated: “Nigeria is an incredibly tough place to live. MTN suddenly raising their weekly 15GB data from N2,000 to N6,000 without any prior warning is sheer madness. That would cost 24k in a month, nearly the country’s minimum wage on data.”
In response to recent developments, Karl Toriola, MTN Nigeria's CEO, asserted that the adjustment aims to address rising operational costs and facilitate critical investments in telecom infrastructure.
He emphasized that this tariff adjustment is a vital step toward alleviating economic pressures on the industry, assuring subscribers that it will enhance services.
