After several agitations and counter-agitations from telecoms industry groups and the labour union, over the approval granted by the Nigerian Communications Commission on a 50 per cent telecoms tariff hike, the telcos have commenced the implementation process, without prior notice to the subscribers, writes Emma Okonji
After the January approval that was granted to telecoms operators by the Nigerian Communications Commission (NCC), for a 50 per cent hike in telecoms tariff, the NCC has gone further to approve the template that clearly defines the tariff rate mechanism that spelt out the new rates that would be charged by the telcos.
Meanwhile, there are reports that the Nigerian government has scaled down its proposed increase in telecommunications tariffs from 50% to 35% following strong opposition from the Nigeria Labour Congress (NLC).
The decision was reached after a high-level meeting between government officials and labour leaders at the National Security Adviser’s office on February 21, 2025. The meeting, which lasted about three hours, saw NLC officials vehemently rejecting the planned tariff hike. Their persistent pushback led the government and the Nigerian Communications Commission (NCC) to lower the proposed increase by 15%.
Although the template for the new rate differs among the telecom operators, its approval by the NCC has propelled some operators whose tariff templates were ready and approved by the NCC, to commence implementation of the new tariff rate, without consulting the subscribers.
MTN was the first to begin the 50 per cent tariff hike implementation penultimate week, followed by Airtel last week, with others to follow suit this week.
Since the phased implementation of the 50 per cent tariff hike, subscribers appear calm and may have accepted the tariff hike after several agitations and counter-agitations that brought them to the conclusion that there was a need to increase the tariff to experience better service quality.
NCC had said the implementation of the 50 per cent hike in telecoms tariff would commence in February, but the telecoms regulator did not give the actual date of commencement to prepare the minds of subscribers.
Implementation Process
Giving details of how the telcos commenced the implementation of the 50 per cent hike in tariff, the spokesperson for telecoms operators and Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, confirmed to THISDAY that telcos have commenced the implementation of the tariff hike.
According to him, the regulator has approved a 50 per cent hike in telecoms tariff for each operator, but the operators will not have a uniform tariff charge because of their existing tariff rates, which differ from operator to operator.
“Even though there is an increase in tariff rate by 50 per cent, the new rate will not be the same for all the operators because their existing rates are different, depending on the network operator,” Adebayo said.
He however said the initial data charges and data plan for each subscriber before the tariff hike was introduced, would remain the same across the network until the data plan expires. “Some subscribers have one one-month data plan, and some have several months data plan, while some even have less than one-month data plan. As long as the existing data plan is still active and has not expired, the subscriber will continue to enjoy the same old rate until the data expires. As soon as the data plan expires, the subscriber will be charged the new rate that will reflect a 50 per cent hike,” Adebayo said.
Adebayo however explained that it would be difficult to begin the tariff hike in one day because the operators needed to develop a new template that would reflect the 50 per cent tariff hike and send the same to NCC for approval. “The implementation by each operator, therefore depends on the time the operator gets approval from NCC,” Adebayo further said.
According to him, the NCC has instructed telecoms operators to give clear explanations to any subscriber, who seeks clarification on the tariff hike.
Assured Impact
Adebayo has however assured subscribers that the hike would enable them to embark on infrastructure development and network expansion that would lead to improved telecoms service delivery across networks.
“So, what the tariff hike will do for us is that it will bring the industry out of the woods, because really and truly, we were in a bad situation, and the sector was dying gradually. Now that we have this tariff review in place, we need to begin the recovery process that will improve telecom services.
“We will now start our recovery process as an industry, part of which will be to put at the forefront, customer satisfaction and quality of service. Given this new development, we need to go back to rebuild, to optimise systems, and then ensure that we deliver services that are best-in-class to the subscribers,” Adebayo said.
Adebayo further explained that the expected improvement in service would not be immediate but assured Nigerians that with time, service quality would improve.
He thanked President Bola Ahmed Tinubu for signing the official gazette on Critical National Infrastructure and Information (CNII) in August last year, which seeks to protect telecom infrastructure from willful damage and incessant closure of telecom sites. Adebayo also called for the implementation of CNII across the country, to protect telecoms infrastructure from willful damages and incessant closure of telecoms sites.
Chief Corporate Services and Sustainability Officer at MTN Nigeria, Tobechukwu Okigbo, who spoke at the recent telecoms forum in Lagos, said the industry was almost sliding into inflation before the tariff adjustment, adding that the 50 per cent hike in telecoms tariff will help save the industry from sliding into inflation.
Asked when Nigerians would begin to feel the impact of improved telecoms services, based on the 50 per cent hike in tariff, Okigbo said in three months from the date of implementation of the tariff hike, subscribers would experience significant improvement in the quality of service across networks.
Tariff Hike Approval
The NCC, the telecoms industry regulator, in January this year, approved the request by telecoms operators for tariff adjustments in the telecoms industry. NCC, through its Director of Public Affairs, Mr. Reuben Muoka, announced a 50 per cent increase in telecoms tariff.
Telecom operators had requested for 100 per cent hike in telecoms tariff for industry sustainability, a request that was rejected by different groups of telecoms subscribers, who felt that any increase would bring further hardship to the subscribers.
According to NCC, the commission, under its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators, will be approving tariff adjustment requests by Mobile Network Operators (MNOs) in response to prevailing market conditions.
The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at, taking into account ongoing industry reforms that will positively influence sustainability.
These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.
The statement further said that tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators, adding that the approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.
Initial Agitations
Before the January approval of the tariff adjustment, the Association of Telephone, Cable TV and Internet Subscribers of Nigeria (ATCIS-Nigeria), including the National Association of Telecoms Subscribers (NATCOMS) and the Nigeria Labour Congress (NLC), were vehemently against any tariff hike and had called on NCC not to oblige the request of telecoms operators for a tariff hike.
However after the approval was granted and made public by NCC, ATCIS rescinded its position and gave reasons why tariffs should be increased.
ATCIS, however, gave telecom operators a two-week ultimatum from the date of the tariff hike implementation in February to achieve significant improvement in service quality. It warned that it would return to confront telecom operators if services remained the same after two weeks of the 50 percent tariff hike.
National President of ATCIS, Sina Bilesanmi, who gave the warning, told THISDAY that although the association was initially against tariff hike, it later saw reasons why the tariff should be increased to at least 50 per cent for industry sustainability and to enable telecoms operators to offer quality services that subscribers deserve. He, however, promised that ATCIS would monitor the development of service quality, and would not hesitate to challenge telecom operators if there is no adequate improvement after two weeks from the implementation date.
It is hoped that the tariff increase will translate to better performances to justify the pain associated with the new dispensation.
