The recent 50 per cent increase in telecom tariffs has compounded economic challenges for Nigerians, with many struggling to keep up with rising costs while dealing with worsening service quality. Data depletion has emerged as a major concern, further inflating broadband expenses for 170 million subscribers, including businesses reliant on digital operations.
Over the past three weeks, businesses and individuals who depend on the Internet for their livelihoods have faced a tough reality. The tariff adjustment has made Internet access significantly more expensive, forcing people to reconsider their spending on data. At the same time, Multichoice raised its DStv and GOtv subscription fees by 21 per cent, though the Federal Competition and Consumer Protection Commission (FCCPC) later directed the company to suspend the price hike.
For many Nigerians, the increased cost of communication services is a major blow to their already strained budgets. With a minimum wage of N70,000, workers now have to allocate up to 15 per cent of their earnings to telecom expenses. For instance, MTN’s 20GB data plan now costs N7,500, amounting to 10.7 per cent of the minimum wage, while a 100GB plan that previously cost N20,000 has risen to N40,000.
Businesses, especially small and medium-sized enterprises (SMEs), are also feeling the pressure. Those relying on online platforms, cloud services, and digital marketing are facing higher operational costs. With inflation recently rebased from 34 per cent to 24 per cent, the additional financial strain from data price increases has left many struggling.
Meanwhile, data depletion has become a persistent complaint among users, with many reporting that their Internet bundles run out much faster than before. The Nigerian Communications Commission (NCC) attributes this to several factors, including background app activity, automatic updates, poor network quality, and older network technologies.
Frustrated customers have taken to social media to voice their anger, describing the new pricing regime as exploitative. Consumer advocacy groups and telecom subscriber associations have called on the government to reassess the tariff hike. The National Association of Telecoms Subscribers of Nigeria (NATCOMS) has even threatened legal action if the Federal Government and NCC fail to intervene.
The Nigeria Labour Congress (NLC) had previously warned of a nationwide shutdown of telecom operations if tariffs were not rolled back by the end of February. However, a last-minute agreement between the government and labour unions resulted in a partial reduction from 50 per cent to 35 per cent. Despite this, telecom operators claim they have yet to receive an official directive to implement the cut.
Industry executives argue that the price adjustment was long overdue, citing a 12-year stagnation in tariff reviews, rising energy costs, inflation, and currency devaluation. Telecom giants like MTN and Airtel have reported significant losses due to the economic downturn, with MTN recording a N514.9 billion loss in the first nine months of 2024. Airtel also saw a sharp decline in revenue, falling from $1.24 billion in 2023 to $738 million in 2024.
According to the Association of Licensed Telecoms Operators of Nigeria (ALTON), the tariff hike is necessary for the survival of the industry. ALTON Chairman Gbenga Adebayo stated that telecom services should not be used as a palliative for other economic challenges, adding that sustainable pricing is essential to maintaining network quality and expanding coverage.
Despite assurances from telecom providers that service quality will improve within three months, many Nigerians remain skeptical. Until then, businesses and individuals continue to navigate the tough reality of higher costs and unreliable service, with growing calls for regulatory intervention.
