Telecom Tariff Hike: House of Reps Demands Reversal Amid Economic Concerns
The long-awaited 50% tariff increase by Nigerian telecommunications operators has officially begun, following approval from the Nigerian Communications Commission (NCC). The hike was implemented across the country on February 12, 2025, with MTN leading the way by adjusting its data plan prices. Despite this, other major telecom companies like Glo, Airtel, and 9mobile have yet to fully release their updated pricing structures. While the hike affects various data plans, prices for larger bundles saw steep increases, prompting significant backlash from both lawmakers and consumers.
The House of Representatives responded swiftly to the tariff hike by calling for a suspension. Lawmakers, including Oboku Oforji of Bayelsa State, argued that the increase would further burden Nigerians who are already struggling with high inflation rates and the recent removal of fuel subsidies. They cited the ongoing economic hardships as a key reason to halt the price adjustments, especially as many citizens face financial difficulties. The move by lawmakers to address the situation followed a motion highlighting the pressing need for affordable telecom services during these challenging times.
Lawmakers expressed their concerns about the timing of the increase, with Oforji emphasizing the long-standing operational issues with telecom services, such as poor network quality. He argued that before implementing any tariff hikes, service providers should first resolve these issues to ensure consumers receive value for their money. The National Association of Telecoms Subscribers also criticized the tariff increase, claiming that it was insensitive given the country’s economic climate and would further disadvantage small businesses and informal sector workers who rely heavily on affordable telecom services.
In defense of the tariff hike, industry representatives, including the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, pointed to the need for sustained investment in the telecom sector. Adebayo explained that the increase was necessary to ensure the long-term viability of the industry, which has struggled with underinvestment for years. He reassured lawmakers that once the situation was fully understood, they would appreciate the need for such an adjustment.
The telecom tariff hike, which the NCC approved on January 20, 2025, was justified by operators as a response to rising operational costs. The decision has sparked significant debate, with the National Association of Telecommunications Subscribers and the Nigeria Labour Congress opposing the increase. They have called for a reduction in the hike and threatened legal action and protests. Despite the controversy, the sector’s regulator maintains that the price adjustments are crucial for ensuring the sustainability of telecommunications services in Nigeria.
Source: Punch