Nigerians will soon pay more for voice calls and text messages following the Nigerian Communications Commission’s (NCC) approval of a 50% tariff hike. The new rates, set to take effect in February, will raise the cost of calls from ₦11 to ₦16.5 per minute and SMS charges from ₦4 to ₦6. This decision, aimed at addressing rising operational costs in the telecom sector, has sparked mixed reactions from stakeholders and consumer groups.
According to the NCC’s 2023 Subscriber/Network Performance Report, Nigerians spent approximately 408.5 billion minutes on local calls last year. If this trend continues, telecom operators could generate ₦6.74 trillion in revenue from calls in 2025, excluding promotional discounts and free calls.
MTN, the market leader, is expected to earn over ₦4 trillion from outgoing and incoming calls, accounting for more than 60% of the market’s total revenue. Airtel could follow with projected earnings of ₦1.78 trillion, while Glo may generate ₦536.2 billion. Smaller operators like Smile and Ntel are estimated to earn ₦5.7 billion and ₦13.1 billion, respectively.
Outgoing calls alone are expected to bring in ₦3.28 trillion, while incoming calls could contribute ₦3.23 trillion. Despite the rise of data services and over-the-top (OTT) messaging platforms like WhatsApp, voice calls remain a significant revenue source for telecom operators.
The NCC’s report also revealed that Nigerians sent and received 22.97 billion SMS in 2023, a decline from 25.92 billion in 2022. With the new rate of ₦6 per SMS, telecom operators could earn ₦137.84 billion from text messaging in 2025.
MTN, which accounted for 73% of SMS traffic in 2023, is projected to earn ₦100.72 billion. Airtel could generate ₦26.26 billion, while Glo may make ₦8.10 billion. Smaller players like 9mobile and Smile are expected to see modest earnings of ₦2.75 billion and ₦7.36 million, respectively.
The NCC stated that the tariff adjustment was necessary to help telecom operators cope with inflation and rising operational costs. “Tariff rates have remained static since 2013, despite increasing costs in the industry,” said Reuben Muoka, NCC’s Director of Public Affairs.
The regulator explained that the 50% increase is significantly lower than the over 100% hike initially requested by some operators. The decision, guided by the NCC’s 2013 Cost Study and 2024 Guidance on Tariff Simplification, aims to balance industry sustainability with consumer protection.
The NCC assured that the adjustment would lead to improved network quality, customer service, and broader connectivity coverage. “We are committed to creating a telecommunications environment that works for everyone—consumers, operators, and the economy at large,” the statement read.
Despite the NCC’s assurances, consumer groups have expressed concerns about the impact of the tariff hike on Nigerians. Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers, criticized the decision, warning that it would worsen the financial burden on citizens.
“We were not consulted adequately, and this increase is unacceptable,” Ogunbanjo said. He suggested that telecom operators explore alternative funding methods, such as public share offerings, to raise capital without overburdening consumers.
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Ogunbanjo added that the association would consider legal action if the new rates were implemented without addressing subscribers’ concerns. “A 50% increase will cripple Nigerians. A moderate hike of 5% to 10% is more acceptable,” he stated.
The Association of Telephone, Cable TV, and Internet Subscribers of Nigeria emphasized that the tariff hike must lead to tangible improvements in service quality. Its president, Sina Bilesanmi, warned that legal action would be taken if telecom operators failed to enhance their infrastructure and service delivery within two weeks of the new rates’ rollout.
“We understand the need for the adjustment to sustain the industry, but subscribers deserve better service in return,” Bilesanmi said.
Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, acknowledged the challenges faced by telecom operators but emphasized the need for moderation. “While operators sought a 100% hike, we have capped the increase at 50%, balancing industry needs with consumer interests,” Tijani said during a recent TV appearance.
As Nigerians brace for the new rates, the debate continues over how to sustain the telecom sector without placing an excessive financial burden on citizens. Consumer groups, industry stakeholders, and regulators will be closely watching the implementation of the tariff hike and its impact on the economy and telecom services.