MTN Nigeria has begun effecting the 50% tariff hike approved by the Nigerian Communications Commission (NCC) on January 24, 2025, catching many subscribers off guard. While a 50% hike was approved, not all tariffs increased by the same amount.
For example, the 15 gigabytes (GB) weekly plan that used to cost ₦2,000 increased by 200% to ₦6,000. Other plans such as the 1.8GB monthly plan that used to be ₦1,000 increased to ₦1,500 staying within the 50% window.
Interestingly, the hike did not affect some data plans. Smaller plans, like the 2.5 GB daily plan, still ₦500, while larger plans, like the 400 GB three-month plan, which used to cost ₦50,000, now cost 480 GB for ₦120,000.
The hike has also been applied to voice calls, which have increased from ₦11 per minute to ₦18 per minute, representing a 60% increase.
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Many Nigerians are displeased with the tariff increase, which they have decried as coming at a time of unfavourable economic conditions. According to the Central Bank of Nigeria, the country’s inflation rate is currently 34.80%.
Food inflation, on the other hand, was up to 40% in November 2024, up from 32% in 2023. This means that many services compete with basic needs like food.
However, the socioeconomic conditions are also affecting telcos, which have lost billions of dollars to forex losses following the instability of the naira. In 2024, MTN recorded a ₦656 billion loss while Airtel recorded significant losses in 2023.
In an interview with Techpoint Africa, Ernest Akinlola, a veteran in the telecoms industry, said the tariff hike, although insufficient, is a welcome development by the NCC. Akinlola who defended the tariff hike said that it was necessary for the industry’s survival.
He also predicted that the insufficient increase might push telcos to start looking into other ways, including B2B business models, to generate revenue.
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While the hike could further put a strain on Nigerians who are currently battling socioeconomic difficulties, it could also mean the difference between poor and quality services.
