BY: NASIRU WAZIRI, KANO
The Nigerian Communications Commission (NCC) has approved a significant increase in data tariffs for MTN, Airtel, Glo and 9Mobile, marking the end of a decade-long lobbying effort by these telecom giants.
This change is expected to take effect, with tariffs rising by up to 50%
The new rates will see the cost of a phone call increase from ₦11 to ₦13.80 per minute, while SMS charges will rise from ₦4 to ₦6 for data plans, the price of a 1GB bundle will increase from ₦300 to at least ₦800.
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The Nigerian Communications Commission (NCC) was established under the Nigerian Communications Act of 2003, specifically Act No. 19, which was enacted on July 8, 2003 . This act aimed to create a regulatory framework for the Nigerian communications industry, promoting fair competition, AND PROTECTING CONSUMER INTEREST, and ensuring the provision of modern, universal, efficient, reliable, affordable, and easily accessible communications services throughout Nigeria. But NCC went too far to protect Nigeria Telecommunications company decision for hyping tariff, through it Minister of communication and Digital economy.
According to the NCC, this tariff adjustment is necessary to reflect the current economic realities and ensure the sustainability of the telecommunications industry.
The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, has also acknowledged the need for price adjustments, stating that it may be necessary to prevent significant financial losses for telecom operators.
In fact, MTN Nigeria reported a ₦137 billion loss in 2023, with losses expanding to ₦514.9 billion in the first nine months of 2024. Airtel Africa also reported losses of $89 million in FY 2024, largely driven by challenges in Nigeria.
The President of the Association of Licenced Telecommunication Operators of Nigeria (ALTON), Gbenga Adebayo, argues that cost-reflective prices will incentivize investment and help improve quality in the long run.
However, concerns have been raised about the potential impact of these tariff increases on internet usage and digital inclusion in Nigeria, particularly given the country’s high food inflation rate of 39.93%.
It remains to be seen how these changes will affect consumers especially the teeming youth students, business operators and civil servants.
Although Nigerians are known for their record of endurance or you can say they are heartless. The telecommunications industry as a whole will face angry via boycott, from downloading vendors , individuals android users, organisations, cooperations etc. But all this will not be enough to convince the Telecommunications giants to reverse their decision.
There’s also need for the engagement of stronger institutions like civil society organisations, traditional rulers, religious clerics.
Regional bodies like ECOWAS and AU have a role to play, in ensuring uniform tariff for such charges like it is contained in its chatter of African peer review mechanisms and AFCTA and the rest.
In conclusion, the recent tariff hike approved by the Nigerian Communications Commission (NCC) and supported by the National Information Technology Development Agency (NITDA) and Nigerian legislators is a clear example of regulatory capture and a lack of consideration for the welfare of Nigerian citizens.
The connivance of these government agencies and lawmakers has resulted in an unjustifiable increase in the cost of telecommunications services, which will disproportionately affect low-income Nigerians and further exacerbate the country’s digital divide.
It is imperative that the NCC, NITDA, and Nigerian legislators reconsider their decision and prioritize the interests of Nigerian citizens over those of telecommunications companies, and (ALTON).
The government must ensure that telecommunications services are affordable, accessible, and reliable for all Nigerians, regardless of their socioeconomic status.
Ultimately, the Nigerian government must take responsibility for protecting the welfare of its citizens and promoting a digital economy that benefits all, not just a privileged few. The recent tariff hike is a step in the wrong direction, and it is imperative that the government takes corrective action to address the concerns of Nigerian citizens.
Can be reached on: nasirumuhammedwaziri@gmail.com