ON January 20, 2025, the Director of Public Affairs of the Nigerian Communications Commission (NCC), Reuben Muoka, announced the approval of a 50 per cent increase in telecom service tariff in Nigeria.

         This increase is lower than the 100 per cent requested by telecom operators. The reasons cited for the tariff hike include addressing rising operational costs such as taxes, regulatory fees, inflation, ensuring industry sustainability, and reflecting current economic realities. The NCC’s decision is based on Section 108 of the Nigerian Communications Act, 2003.

RECENTLY, the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, stated that the Nigerian government planned  to increase electricity tariff in the coming months. According to her, the tariff need to rise by about two-thirds for many customers to reflect the actual cost of electricity supply. Although, no specific date has been announced, adjustments are expected as part of broader efforts to reform the power sector.

THE government has explained that current electricity tariff covers only 65 per cent of the actual cost of supply, with the remaining 35 per cent subsidised by the Federal Government.

IN response to these hikes, the Nigeria Labour Congress (NLC) directed its affiliates to be on alert for a nationwide protest should the Federal Government fail to implement the telecommunication services charge as agreed. The NLC has also threatened strike action if the government forcefully migrates electricity customers from lower bands to Band A. In addition to the NLC’s stance, many Nigerians have voiced their opposition, warning that these increases will only worsen the economic hardship already being felt by the people.

REGARDING the implementation of the telecom tariff hike, each service provider would introduce its new rates separately, following regulatory approval. The NCC would review requests on a case-by-case basis. For instance, as of March 2025, the MTN Pulse bundle call rate has increased from ₦7.80 per minute to ₦13.80 per minute, representing a 76.92 per cent rise. Additionally, one gigabyte of MTN SME data, previously sold at ₦350, now costs ₦800, exceeding a 50 per cent increase.

BEFORE the latest adjustment, Glo subscribers paid ₦11 per minute for voice calls, but now pay ₦13.20 per minute. Similarly, the price of 24GB of data has risen from ₦5,000 to ₦7,500, while 10.8GB now costs ₦3,000, up from ₦2,500.

THE implications of these increases are that their customers will have to pay more for calls, SMS, and data. This may lead to many cutting down on internet usage, which could affect access to information, entertainment, and education.Those on low income may also struggle to afford essential telecom services.

SMALL and Medium-sized Enterprises (SMEs) that rely on mobile and internet services for marketing, customer support, and operations will face higher costs.Remote work may suffer, as increased internet costs could hinder online meetings and cloud-based services.

RISING expenses without a corresponding increase in revenue could negatively impact on business profitability.

ULTIMATELY, consumers will bear the brunt of these price hikes, as higher costs for telecom services and electricity will increase production costs, leading to higher prices for goods and services across Nigeria. These increases will also reduce purchasing power, making life harder for citizens already struggling with the effects of fuel subsidy removal.

DESPITE the reasons adduced for the increments it the tariffs, we allign with other well-meaning Nigerians to demand for a significant reduction in the hikes, if not a total reversal of these adjustments. We urge the government to consider the suffering of Nigerians, who are already burdened by harsh economic policies. The current decisions will only worsen their situation.

THE HOPE also calls on the government to explore alternative revenue sources beyond taxation. This can be achieved by reducing the cost of governance and plugging financial loopholes that drain national resources. Nigerians are already struggling, and asking them to pay more is akin to asking them to draw water from a stone.

WE urge President Bola Ahmed Tinubu to explore ways to tap into Nigeria’s vast natural resources instead of continuously increasing taxes. Nigeria is rich in untapped natural resources that, if properly harnessed, could transform the country’s economy. From hospitality and agriculture to solid minerals, these sectors hold huge potential for revenue generation.