The Nigerian Communications Commission (NCC) approved a 50% increase in telecom tariffs, raising call costs to ₦16.5 per minute. This hike could generate ₦6.74 trillion in revenue by 2025. Despite benefits for major operators, consumer groups oppose it, citing affordability concerns and potential legal action.
The Nigerian Communications Commission (NCC) has approved a 50% increase in telecom tariffs, which could raise the average cost of calls to ₦16.5 per minute. This price hike is expected to generate significant revenue for telecom operators, totaling ₦6.74 trillion by 2025, assuming stable call volumes.
The move primarily benefits large telecom companies such as MTN, which is forecasted to earn over ₦4 trillion from both incoming and outgoing traffic. Airtel and Glo are projected to generate ₦1.78 trillion and ₦536 billion, respectively. Smaller operators like Smile and Ntel are expected to see limited gains from the increase.
The tariff change is designed to help telecom companies manage escalating operational costs and improve service quality while addressing the challenges posed by inflation. However, it has faced resistance from consumer groups such as the National Association of Telecoms Subscribers, which argues that this hike will place an additional burden on Nigerians. The association has threatened legal action unless customer concerns are addressed.
As prices rise, consumers may turn to cheaper communication alternatives, such as WhatsApp, which could impact the financial health of traditional telecom providers. Despite opposition, the NCC's decision reflects ongoing efforts to ensure the sustainability of the telecom sector.
