Telecommunications operators in Nigeria have confirmed that they are finalizing new tariff structures following the Federal Government’s approval of a 50% hike in service rates through the Nigerian Communications Commission (NCC).
While the NCC had initially set the implementation date for February 2025, telecom companies say they will gradually introduce the new tariffs, with full rollout expected in March.
Speaking at a media briefing in Lagos over the weekend, Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), emphasized that the increase was necessary to sustain the sector.
“This is not about profitability for us; it is about ensuring the survival of the telecommunications sector,” Adebayo stated.
He added that different telecom providers would release their own tariffs after obtaining regulatory approval.
“We are now following regulatory steps of filing, reviewing, and obtaining approvals. Once these are finalized, different players will introduce new rates in the coming weeks,” he explained.
Adebayo further stressed that the telecom industry should not be used to subsidize other sectors of the economy.
“You can’t say because the costs of garri, pepper, and okro have gone up, telecom services should be sold below cost. If we continue this way, the sector will suffer negative consequences,” he warned.
Meanwhile, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have rejected the 50% tariff increase and are set to hold mass protests on February 4, demanding a downward review to 5%.
Femi Adeniran, Director of Corporate Communications and CSR, stated that the tariff adjustment would allow telecom operators to invest more in infrastructure and service improvements.
Additionally, Kenechukwu Okonkwo, Director of Product Innovation and Business Development at 9mobile, suggested that market forces should determine tariff rates, expressing hope that economic conditions improve to prevent further hikes.
On the lingering USSD debt issue between banks and telecom providers, Adebayo confirmed that progress was being made towards a final resolution.