The Nigerian Communications Commission (NCC) last Monday gave its nod to the proposed hike in tariff by telecommunications companies operating in the country. The 50 per cent hike is a downward review from the 100 per cent that was initially proposed by the telcos. It will be the first hike in over a decade if the new tariff eventually takes effect.
Surprisingly, the Federal Government has also thrown its weight behind the planned tariff increase. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun while speaking on the sidelines of the just concluded 2025 World Economic Forum in Davos, Switzerland, said the tariff adjustment was necessary for sustaining the sector following the rising operational costs and inflation.
Edun's counterpart, the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, also defended the decision to approve the tariff hike for telecom services. Appearing before members of the National Assembly last Tuesday to defend his ministry’s budget, he stated that the tariff hike was driven by broader economic pressures, the cost of imported goods and other factors.
The pronouncement by the two ministers and the NCC has made the hike a fait accompli. This is despite the widespread backlash and legal threats from advocacy groups and subscribers. It is another burden that Nigerians would have to carry, compounding their already established frustration.
For those who do not know, here is what the new 50 tariff looks like. The average cost of calls will now be pushed to N16.5 per minute from N11, the cost of 1GB of data to N431.25 from N287.5/GB, and SMS prices to N6 from the current N4. This upward review will eat deep into the finances of the average Nigerian, especially those who earn below 50 dollars a month. It will also make the new minimum wage of N70 look more worthless.
We are not opposed to a tariff review, and we agree that, like other sectors, there are increasing financial pressures faced by network operators. But we strongly disagree with the 50 per cent hike. It is way too much, particularly for low-income earners who rely on affordable call and data services for their daily activities. A modest tariff increase of 5 to 10 per cent would be ideal.
So, we are in unison with Nigerians, various interest groups including the Nigeria Labour Congress (NLC), in rejecting the absurd 50 per cent hike. It is unfair, unjust, and burdensome. Nigerians are going through a lot. Buying fuel at over N1,000 per litre is still a weight too heavy to bear. Not to talk of food, electricity bills, and other essential commodities. It is not easy on the masses.
Grappling with the current economic challenges, declining purchasing power and insecurity is sickening. Increasing calls, data, and sms tariff at this time is unwise, insensitive, and ill-advised. We call on the President, Bola Tinubu, to intervene and ensure that a more realistic hike is made.
We also understand, as stated earlier, the challenges telcos are going through in running their businesses. Their agitation for cost-reflective prices in the face of harsh economic conditions is not out of order, but they must exhibit actions of patriotism at this point in time. Yes, they are in business to make profit, and over the years, they have been doing so. But a 50 per cent increment will mean pure extortion.
The importance of the service providers cannot be overemphasised. Should they pack up, nearly all businesses in the country will be shutdown because of the heavy reliance on them and that is why this issue has to be treated with all the care and concern that it deserves. We don't want collateral damage to our economy. The hike should be amicably resolved.
