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One year after the Nigerian Communications Commission (NCC) approved a 50 per cent increase in telecom tariffs, questions remain over whether higher prices have translated into better service quality for consumers.
The tariff adjustment, which took effect on January 20, 2025, came amid rising inflation and mounting operating costs across the economy. Operators argued that the increase was necessary to stabilise the sector, recover investments, and fund network expansion. At the time, broadband penetration stood at just 45.61 per cent, fuelling public concern over whether Nigerians would see tangible improvements in exchange for higher charges.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, defended the hike as unavoidable, warning that without it, the industry’s long-term sustainability would be at risk. Major operators, including MTN, Airtel and Globacom, subsequently adjusted their pricing. Voice tariffs rose from about N11 per minute to between N15.40 and N16.50, while Globacom doubled its rate to 22 kobo per second. MTN increased its Pulse bundle rates, and SMS charges climbed from N4 to N6. Airtel also raised call rates from 18 kobo to 25 kobo per second.
Financially, the price adjustment has strengthened operators’ performance. MTN Nigeria reported a 12.8 per cent increase in active data users to 51.1 million, with data traffic rising 36.3 per cent. Average monthly data usage per subscriber climbed to 13.2GB, a 20.8 per cent increase. Airtel Nigeria posted even stronger gains in the first half of 2025, with voice revenue rising 34.7 per cent to $268 million and data revenue surging 62.4 per cent to $357 million, driven by higher customer numbers and improved average revenue per user.
Despite higher costs, Nigerians continue to consume more data. NCC figures show monthly internet usage grew from about 983,000 terabytes in April 2025 to 1.2 million terabytes by November. However, for many users, affordability remains a concern. Students and workers report spending a growing share of their income on data. According to the Alliance for Affordable Internet, Nigerians spend an average of 4.8 per cent of monthly income on just 1GB of data—more than double the United Nations’ recommended affordability threshold of 2 per cent.
Subscriber groups insist that improved service quality must justify the higher tariffs. President of the National Association of Telecoms Subscribers (NATCOMS), Adeolu Ogunbanjo, said only clear improvements in network performance would validate the increase, as complaints about dropped calls and inconsistent data speeds persist.
On the quality front, progress has been uneven. Broadband penetration rose to 50.58 per cent in November 2025, crossing the 50 per cent mark for the first time, though still below the 70 per cent target set in the National Broadband Plan 2020–2025. Infrastructure projects, including the proposed 90,000-kilometre fibre-optic backbone and the rollout of 2,800 additional towers, are expected to support further gains.
Rural connectivity has shown notable improvement. The NCC’s Q4 2025 Quality of Experience report indicated that average rural download speeds increased to 11.0 Mbps from 8.5 Mbps a year earlier. T2mobile (formerly 9mobile) recorded the fastest rural speeds at 24.9 Mbps, surpassing its urban performance of 18.5 Mbps.
However, 5G deployment remains a major gap. National coverage is estimated at just 45 per cent, with Lagos and Abuja reaching only 27 per cent and 31 per cent respectively. About 6.3 million Nigerians—roughly 3.6 per cent of the population—currently use 5G services.
Looking ahead, industry experts say protecting telecom infrastructure from vandalism, accelerating fibre rollout, and deepening investment will be critical in 2026. While the tariff hike has supported operator finances and modest network improvements, many consumers say the benefits are yet to be fully felt.
In his New Year address, NCC Executive Vice Chairman, Dr Aminu Maida, pledged stronger quality-of-service monitoring, clearer voice calls, and more consistent data speeds. For subscribers, the coming year will test whether higher tariffs finally deliver the service improvements they were promised.
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