The Nigerian Communications Commission (NCC) has approved a 40% tariff increase for mobile network operators in Nigeria, effective January 2025. This move is expected to significantly impact the country's telecommunications sector, with users facing higher costs for calls, SMS, and internet bundles across all mobile networks.

According to reports, the new rates will see the cost of a phone call increase from ₦11 to ₦15.40 per minute, while SMS charges will rise from ₦4 to ₦5.60. Data plans will also be affected, with the price of a 1GB bundle increasing from ₦1,000 to at least ₦1,400. The NCC has confirmed that further details of the tariff adjustments will be shared in an official announcement.

The push for a tariff hike has been ongoing for years, with major telecom providers lobbying for an increase to address rising operational costs. These costs include energy expenses, infrastructure maintenance, and regulatory compliance, which have been compounded by the naira's depreciation, inflating import costs. The industry players had warned of potential collapse due to mounting losses if the tariff hike was not approved.

Earlier this year, the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, initially rejected the call for a tariff increase, urging operators to adopt innovative strategies. However, the demand grew, and Tijani recently hinted at exploring measures to sustain the sector in 2025, signaling a possible approval for marginal tariff increases.

The tariff hike aims to sustain operators, but consumer groups have expressed concerns about its impact on affordability, especially for low-income Nigerians. The move may exacerbate the already existing digital divide in the country, where many citizens struggle to access affordable telecommunications services.

The NCC has stated that the announcement will benefit both subscribers and operators, as they have taken into account the proposals from the industry and the public. However, the impact of this tariff hike on the Nigerian economy and its citizens remains to be seen.

As the country moves forward with this significant change, it is essential to monitor the effects of the tariff hike and ensure that the telecommunications sector remains competitive and accessible to all Nigerians.