The Nigeria telecommunication industry last week entered into another round of price war as some key operators in the industry tried to commence what may be termed the gradual implementation of a 50 percent tariff increase approved by the Nigerian Communications Commission in January.
Earlier in the week, major telecom operators, in a smart move adjusted tariff unannounced starting with data plans, while leaving call, and short message services (SMS) rates unaffected for the time being.
The leading operators in the sector such as MTN, Airtel, and 9mobile unofficially released updated data rates.
For instance, MTN’s new rate for 25gigabite (GB) rose to N9,750, up from the previous N6,500. Similarly, 10GB, 5GB and 1GB rose to N5,250, N2,250 and N525, respectively, instead of the earlier cost of N3,500, N1,500 and N350 each.
Larger data bundles have seen even steeper increases, as the 1.5 terabyte 90-day plan has risen from N150,000 to N240,000, and the 600GB 90-day plan is now priced at N120,000, up from N75,000, according to the updated list.
Airtel’s 23GB data plan rose to N9,000 from N6,000, while 10GB was hiked to N4,500 from N3,000 in accordance with the NCC approved rates.
“Nigeria’s digital economy must be empowered to catalyze economic growth and the driver of innovation and possibilities”
From the stable of 9mobile, the price adjustment initiative brought the cost of 22GB to N7,500, up from N5,000, while 9.5GB rose to N3,750, from the previous N1,500.
NPA gets approval for tariff increase
Also, the Nigerian Ports Authority has secured approvals to increase its tariffs by 15 percent, marking the first adjustment since 1993.
The decision, backed by necessary approvals, aims to address aging infrastructure, obsolete equipment, and slow port expansion, which have weakened Nigeria’s port competitiveness.
The Managing Director of the NPA, Abubakar Dantsoho, said the tariff review will fund port reconstruction, modernisation, and the deployment of an Information and Communications Technology (ICT) backbone crucial for the Port Community System (PCS) and National Single Window (NSW).
Increased revenue is also expected to support maintenance works, including the reconstruction of the Escravos Breakwaters and upgrades at Rivers, Onne, and Calabar Ports.
Stakeholders acknowledged the need for the increase, citing inflation, which is currently at about 34.8 percent, and rising operational costs.
Joshua Asanga, a former NPA general manager affirmed the necessity of improved port infrastructure, tugboats, and ICT systems, while another stakeholder urged investments in jetties like the Kirikiri Lighter Terminal.
Globally, port authorities rely on operational revenue to sustain infrastructure, dredging, navigation aids, marine craft procurement, automation, and security.
Industry experts argue that despite widespread belief, NPA tariffs remain among the lowest in the region, with inefficiencies such as bureaucratic bottlenecks and the absence of a PCS inflating overall port costs.
NLC resists price hike
But in a swift move countering the new telecom rates, the Nigeria Labour Congress condemned the implementation of the 50 percent tariff hike demanding an immediate reversal to the previous rates.
The NLC leadership insisted that the hike which was coming despite the earlier constitution of a 10-man committee made up of NLC and the Federal Government to deliberate on the tariff hike within two weeks and report before any final decision was made amounted to a breach of trust.
Consequently, NLC issued a March 1, 2025 deadline for a total shutdown of the telecom’s operations if the tariffs are not reversed.
“In view of the rising cost of operations, the new fees that have been introduced are tolerable because you also need to look at sustainability”
NLC in a communiqué signed by its President, Joe Ajaero and General Secretary, Emma Ugboaja after a meeting of the NLC Central working Committee in Lokoja on Tuesday accused the telecom firms of betraying trust and disregarding due process by implementing the hike before the 10-man committee completed its review.
In what can be said to be a humble submission to the will of NLC, the telecom firms, specifically MTN, immediately announced a reversal to the old rates in anticipation of the outcome of the 10-man committee’s report.
Stakeholders’ perspective
Meanwhile, other stakeholders in the Nigeria economy have expressed concerns over the stands of those opposing the tariff hike given the critical role of the sector to the nation’s economy and the current realities.
For instance, the Lagos Chambers of Commerce and Industry in a statement noted that the telecom services have become a critical part of our lifestyle and business, emphasising that the telcos must remain competitive to deliver the best quality of services to businesses that can leverage technology to save some costs.
According to the Chamber’s Director General, Dr. Chinyere Almona, the current operating environment in the telecommunications sector has become too expensive for the telcos to operate profitably.
Almona noted that factors such as rising energy costs, the increasing price of network equipment, inflation, and currency depreciation have placed a heavy financial burden on the operators. Telecom providers have resorted to increasing tariffs to mitigate the rising cost.
“The recent hike in telecom tariff has attracted mixed reactions. While this hike may offer relief for the operators, it risks placing additional strain on consumers, particularly those in lower-income brackets. Another factor of consideration by most stakeholders is that Nigerian citizens and businesses deserve better services from the operators and more robust regulation from the government,” the Director General stated.
The Chambers however, noted that as part of requisite to meeting the Federal Government’s target of a one trillion-dollar economy by 2030, the country needs more investments in critical infrastructure to drive the much-needed digital revolution for growth and development, pointing out that, a robust digital infrastructure will support innovation across all sectors of the Nigerian economy.
In balancing the stakes, the LCCI insisted that, beyond the hike, the operators and regulators need to settle down into delivering quality services to drive operational cost efficiency for businesses and support the automation of government services.
Expanding the scope of operations
For the LCCI, the advantages of supporting the telecom firms to the economy and governance outweighs the so-called tariff hike, as they believe that true deployment of their service will help reduce the leakages in the systems and further boost the economy.
To this end, LCCI has called for the reduction of human interface in the conduct of regulatory services like licensing of products, obtaining necessary permits, issuance of certifications, and port operations.
“These activities can be automated for cost-effectiveness for businesses and better efficiency on the part of the government. The emerging innovative landscape in food production, surveillance technology for security, citizens’ social engagement, and the exploits of artificial intelligence will all depend on a robust digital ecosystem that is comparable with advanced economies,” the Chambers stated.
According to the Chambers, one of the most significant items for inclusion in the rebasing of Nigeria’s GDP is the activities in the information and communications technology (ICT) sector.
“This sector recorded resilient growth during the COVID-19 pandemic and has also led other sectors in the post-pandemic recovery and stability. This reality should then attract more government attention and funding for the digital and creative industry. Businesses look to our digital infrastructure to support their operations and cost optimization,” it said.
The LCCI boss submitted that, “To remain competitive and continue to provide quality service, telecom operators must overcome significant challenges. Nigeria’s digital economy must be empowered to catalyze economic growth and the driver of innovation and possibilities. We urge continuous engagement with critical stakeholders to create a win-win scenario.”
Why government must be compassionate
While the debate for or against telecom service tariff hike is carefully backed by merits and demerits by stakeholders along the line of interest, there is no doubt that the planned increase in tariffs amidst many others bring a huge burden to Nigerians.
For instance, while citizens are still trying to comprehend and absolve the telecom tariff hike, the Central Bank of Nigeria last week announced the introduction of service charge on the use of automated teller machines even as the presidency equally revealed a hike in electricity tariff in view.
These moves financial analysts believe are certainly going to increase cost of living, aggravate inflation and consequently lower the standard of living of Nigerians.
Monday Osasah, an Abuja based financial analyst noted that the quest for price increase by the current administration of President Bola Tinubu cannot but be lamentable considering the battle most Nigerians are facing to survive the economic downturn in the country.
“The imperative is on the government to carefully reconsider the approval granted operators, or take immediate steps towards remedial measures in the interest of Nigerians. Let it not be seen that the government is associated always with revenue generation that does not translate to economic prosperity for the average Nigerian,” he stated.
Reviewing the recent announcement by the Special Adviser to the President on Energy, Olu Verheijen, who cited the need for a cost-reflective pricing model to attract private investment into the power sector for an impending electricity tariff in the coming months, Osasah stated that while the telecoms decision represents the first major tariff adjustment almost 12 years after the last one, the electricity tariff increase is coming closely on the heels of stiff increase in the c classified Band A of the sector.
He added that Nigerians and industries are still reeling from the last electricity tariff hike, particularly because the power supply is far from being steady, contrary to official promises.
He pointed out that the telecom increase has been met with widespread concern and protests from subscriber bodies and labour unions, highlighting the delicate balance between the needs of the telecoms industry and the affordability of essential services for the populace.
“Without doubt, the hike will disproportionately affect the poor, further widening the digital divide and limiting access to crucial communication services. In a country where many rely on mobile phones for everything from business transactions to education and social connection, the increased cost of communication could have far-reaching consequences,” he noted.
According to him, the critical challenge with the Nigerian citizenry is their inability to hold the government accountable for the use of resources. He wondered what the government did with the N2.3 trillion tax and levies received from the telecoms operators in 2023 as revealed by the Group Special Mobile Association.
Similarly, the proposed increase in electricity tariffs is deemed unjustified as the sector continues to offer very poor services and to a large extent contributing to the demand for tariff hike by the telecom operators.
Dismissing the planned electricity tariff increase, Professor of Energy Economics and President of the Nigerian Economic Society, Adeola Adenikinju and a former consultant to the United Nations Development Programme, Dr Samson Olalere, said “It is hard to justify the increase in electricity tariff at this time. The promise of a stable electricity supply following the last tariff increase has not been fulfilled; electricity supply remains epileptic in most cases. Nigerians are also reeling from the high inflationary environment. Higher electricity tariffs would undoubtedly fuel inflation rate in Nigeria.”
Also, the Campaign for Democratic and Workers’ Rights in a statement by its National Publicity Secretary, Chinedu Bosah, described the increase as an outrageous move that will further escalate the cost of living and doing business, deepening the economic hardship faced by workers and the masses.
Moreover, the government seems not satisfied with milking the citizens through charges while operators, stakeholders and analysts present the rising cost of operations as justification.
As stated earlier, commencing from March 1, 2025, bank customers will no longer enjoy free withdrawal services while using ATMs.
But reacting to the move, the Founder/CEO, Centre for the Promotion of Private Enterprises, Muda Yusuf, said the new fees are tolerable.
“In view of the rising cost of operations, the new fees that have been introduced are tolerable because you also need to look at sustainability,” he said.
He further explained that the machines need to be acquired, they need to be maintained and they also need to be secured.
“These costs need to be covered. So we also have to be fair to the banks especially as the fees are tolerable,” he said.
New policy on ATM cash withdrawals mutually beneficial to banks, customers, says CBN
Meanwhile, the Central Bank of Nigeria says its recently announced policy imposing charges on cash withdrawal by customers from Automated Teller Machines of banks other than theirs, is mutually beneficial to both the banks and customers.
CBN’s Acting Director, Financial Policy and Regulation Department, John Onojah, stated this on a live television programme on Saturday.
He said that with the implementation of the new policy, the complaints of shortage of cash at bank ATMs will be a thing of the past, while banks will be helped to recover costs on the other hand.
“We have gotten the commitment of the banks to ensure that you don’t go to the ATMs and be told that there is no money. We have ensured that when you get to the bank, at least we have set a minimum of N20,000 that you can withdraw at your own wish,” Onojah said.
“The third one is to say that even in remote locations, you will have machines that are there, not on the bank premises. Then on the banks’ side of the banks, deploying machines is quite expensive, they are capital intensive, I wouldn’t tell you how much it costs a bank to deploy just one machine.
“And so, we need to be able to encourage them to at least do what we call cost recovery. It is a balanced circular that came out. While we look at the side of the bank, at least they should be to recover their cost, we also want to ensure that the consumer, the customer to the bank at any point in time has access to cash,” he stressed.
Onojah reiterated that the charges are only for withdrawal from other banks ATMs, adding that there are no costs for customers any time they withdraw money from ATMs owned by financial institutions that they bank with.
The CBN in a circular on Tuesday to all banks and financial institutions announced that customers withdrawing from the ATM of other banks would now be charged N100 per every N20,000.
“The three free monthly withdrawals allowed for remote-on-us (other bank’s customers/not-on-us consumers) in Nigeria under Section 10.6.2 of the Guide shall no longer apply,” the circular partly read.
The CBN directed banks and other financial institutions to apply the following charges with effect from March 1, 2025.
The CBN said for off-site ATMs — automated teller machines not on a bank’s premises – like those at shopping malls, eateries and other public places — a surcharge of not more than N500 per every N20,000 will apply in addition to the statutory N100 fee for withdrawals by customers of other banks’ ATMs.
