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Nigeria: Telcos Set to Implement 50% Tariff Hike Next Month

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Telcos Set to Implement 50% Tariff Hike Next Month
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Telecom operators have announced that they are preparing to roll out new tariffs in line with the 50% increase approved by the Federal Government through the Nigerian Communications Commission (NCC). Although the NCC stipulated that the tariff hike, granted on January 20, 2025, should begin in February, service providers indicated that the full implementation would take effect in March.

Speaking to journalists, content creators, and other stakeholders in Lagos over the weekend, the operators stressed that the rate adjustment is intended to sustain the telecommunications sector, rather than boost profitability.

This development coincides with calls for protest from the Nigeria Labour Congress and the Trade Union Congress (TUC), who are mobilizing large-scale demonstrations on February 4. The unions are demanding a substantial reduction of the tariff hike to approximately 5%.

Leading the discussion among telcos, Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), explained that operators are taking a phased approach to implementing the new tariffs. “We are now following the regulatory process, which includes filing, reviewing, and obtaining approvals. As soon as these approvals come through, different players will introduce their new rates. We expect to see some adjustments in pricing as early as next week,” he said.

Adebayo emphasized that the tariff adjustment is critical for the survival of the telecommunications industry. “The sector should not be used as a means to subsidize other industries. Our pricing must reflect the economic realities we face. Telecom services cannot be provided below cost as a palliative measure against rising prices in other areas. Eventually, this imbalance will have negative consequences,” he stated.

Regarding investments, Femi Adeniran, Director of Corporate Communications and CSR, noted that telecom operators have consistently maintained their investment levels. However, he added that the 50% tariff hike would enable further investment in service improvements.

Kenechukwu Okonkwo, Director of Product Innovation and Business Development at 9mobile, remarked that tariff issues should be subject to market forces. He expressed hope that economic conditions would improve significantly to prevent the need for further hikes.

On the matter of the ongoing Unstructured Supplementary Service Data (USSD) debt issue with banks, Adebayo confirmed that progress is being made toward a final resolution.

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