The House of Representatives on Tuesday directed the Nigerian Communications Commission (NCC) and the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani to suspend the tariff increase, arguing that Nigerians cannot afford higher telecom costs amid rising inflation and the removal of fuel subsidies.
Nigerian telecommunications operators have started implementing the long-awaited 50 percent tariff hike following regulatory approval from the NCC as lawmakers moved to stop the rollout, citing economic hardship.
The pricing hike, which had been approved by the NCC, was set to take effect nationally on Monday. While MTN, the country’s largest telecommunications provider, had already begun implementing the increased tariffs as of Tuesday, other major competitors such as Glo, Airtel, and 9mobile were yet to reveal their new pricing structures.
A top MTN executive, who requested anonymity owing to a lack of authority to talk on the subject, verified the situation.
“Yes, we’ve started updating our price lists. However, this process is gradual, and we haven’t completed it for all products yet.”
The tariff revision mostly impacts MTN data plans. For example, the 1.5GB monthly plan, which was previously priced at N1,000, has been replaced with a 1.8GB plan that costs N1,500.
Similarly, the 15GB plan has been raised from N4,500 to N6,500, and the 20GB plan is now N7,500, up from N5,500. Larger data bundles have experienced even sharper price increases, with the 1.5 terabyte 90-day plan rising from N150,000 to N240,000 and the 600GB 90-day plan rising from N75,000 to N120,000.
The source added, “From tomorrow (Wednesday), prices of other MTN products will be adjusted. We are doing it in phases. Not all the prices went up; some didn’t change, and some are still below 50 percent.”
A senior Globacom officer, who was not authorized to talk on the subject, said that, while the company had not yet implemented the higher tariffs, there was a possibility of an update before the end of business on Tuesday.
An Airtel executive, who also spoke on the condition of anonymity, stated that the pricing increase had been applied throughout the sector.
“As far as I know, every operator has commenced. This is an industry-wide decision, not an operator decision. Our prices have never been uniform, and the decision was made collectively on Monday. Every operator must have begun, even if the rollout is not yet fully completed,” the executive stated.
The House of Representatives intervention follows a motion of urgent public importance raised by a member of the Peoples Democratic Party from Bayelsa State, Oboku Oforji, during Tuesday’s plenary session.
The motion, titled “Need for the Nigerian Communications Commission not to approve the impending hike in the telecommunications tariffs,” sought to halt the tariff increase.
Oforji said that, while telecommunications providers justified the pricing increase by claiming increased operational costs and the need for improved service delivery, the timing was especially problematic considering the economic hardship many Nigerians are experiencing.
He pointed out that inflation, which reached a record 34.6 percent in November 2024, and the elimination of gasoline subsidies had already put a major financial hardship on households.
“The House is aware that telecom operators have been advocating for this hike for over eleven years,” Oforji said.
“However, the National Association of Telecoms Subscribers has rejected the proposed increase, describing it as insensitive and a further burden on consumers who are already grappling with economic challenges and poor network service delivery.”
Oforji emphasized that telecoms must first fix long-standing concerns with inadequate network service before contemplating price increases. He warned that the tariff increase will simply exacerbate many Nigerians’ financial problems, intensifying poverty and growing disparities.
“Affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture, and e-governance,” stressing that “informal sector workers who depend on affordable mobile data to access gig work opportunities may find it harder to stay connected.”
He also argued that small businesses “which rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burdens.”
Oforji said, “It is estimated that a 10 percent increase in telecommunications costs would reduce small business profitability up to 7 percent, potentially leading to the closure of businesses.”
Another representative from Edo State, Billy Osawaru, called on the service providers to first improve the quality of their services before coming up with a hike in tariff.
“Why is it that when things go wrong in this country, the poor people must suffer? First, it was the electricity tariff; now it is the turn of the telecom companies. Nigerians must enjoy these services.
“In the developed world, people are not used to carrying two mobile phones, but this is the practice here. The thinking is if there is no service in one, you might be lucky with the other one. I believe that this increase in tariff should wait until services improve,” he said.
Industry stakeholders, particularly the Association of Licensed Telecommunications Operators of Nigeria, have justified the tariff rise, claiming that it is necessary for the sector’s long-term viability.
Gbenga Adebayo, Chairman of ALTON, warned that continued underinvestment in the telecommunications sector could result in an irreversible decrease in services.
“I understand that a price review is necessary for the survival of the telecom sector,” Adebayo said on a call. “None of us can afford to see this sector collapse.
The inability to recover investments in the telecom business has made sustainability more challenging. When underinvestment continues for an extended period of time, recovery is almost impossible.”
While addressing the public’s concerns about inflation and the high cost of data, Adebayo emphasized that the tariff increase was motivated by a pressing necessity to keep the sector alive.
He stated his confidence that lawmakers, after fully assessing the situation, would come to understand the necessity of the adjustment.
“The public’s concerns are valid, but this tariff increase is essential for sustaining the sector,” he said.
The NCC announced the pricing increase on January 20, citing increased operational costs and the need to preserve the long-term viability of the telecommunications industry.
The commission, through its Director of Public Affairs, Reuben Muoka, stated that the judgment is consistent with its regulatory duty under Section 108 of the Nigerian Communications Act, 2003.
However, the National Association of Telecommunications Subscribers expressed protest, threatening legal action against the agreed pricing rise. NATCOMS argued that the increase be reversed to 10%.
