Nigerians are bracing up for the New Year, with many looking to have a better year in 2025. But telecom operators in Nigeria have a plan for a New Year gift for them.
While many are already burdened by the high cost of using the internet, the telecom operators are planning tariff hike.
The operators are waiting the approval of the Nigerian Communications Commission (NCC) for a potential tariff hike, with reports suggesting it could come in early 2025.
Industry leaders stress that a review is crucial due to ongoing financial challenges.
Reports suggest that regulators could approve a price increase for calls, SMS, and data in January 2025.
Although operators support the idea of a tariff review, they remain uncertain about the exact timeline and the percentage of the increase.
Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, emphasised the industry’s critical situation.
He argued that a tariff review was essential for the sector’s survival. He believes that, if approved, the hike could prevent the industry from collapsing.
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NCC’s director of public affairs, Reuben Muoka, dismissed the speculation and stated that no final decision had been made.
He clarified that the talk of a hike remains purely speculative.
Meanwhile, in the stock market, MTN Nigeria has seen a positive reaction.
Its market cap has risen from ₦3.69 trillion to ₦4.07 trillion, driven by growing anticipation of a tariff increase.
Operators have been lobbying for higher tariffs for years, citing rising operating costs and significant losses, especially from foreign exchange fluctuations.
Both MTN and Airtel recorded heavy financial losses in 2024, with MTN cutting its capital expenditure by 27.79%.
Additionally, the sector’s average revenue per user (ARPU) has fallen by almost 41%, which has intensified the pressure on operators to push for higher tariffs.
In response, the Minister of Communications, Bosun Tijani, acknowledged the need for a price review.
However, the final decision still hangs in the balance.
