Nigerians to Pay 40% More for Calls, SMS, and Data in 2025
The NCC’s tariff hike reflects the growing cost pressures on telecom operators in Nigeria, from inflation to rising energy costs.
Starting in January 2025, telecom operators are expected to implement a 40% tariff hike, following approval from the Nigerian Communications Commission (NCC). Under the new pricing, calls will rise from ₦11 to ₦15.40 per minute, SMS charges will increase from ₦4 to ₦5.60, and 1GB of data will cost at least ₦1,400.
This adjustment has been a long time coming. The last tariff increase was over 11 years ago, when the telecom sector was thriving. But over time, inflation, currency depreciation, and rising energy costs have eroded profit margins for operators like MTN Nigeria, Airtel, and 9Mobile. By 2022, these companies began pushing for higher (100%) tariffs, warning that without cost-reflective pricing, the industry would struggle to survive.
Louis Eriakha
Despite these calls, the NCC resisted, wary of burdening already struggling consumers. But by 2024, the financial toll on operators became harder to ignore. MTN Nigeria reported a ₦514.9 billion ($331.5 million) loss within nine months, while Airtel Africa posted $89 million in losses, driven by soaring energy costs and currency volatility. Eventually, the NCC approved a 40% increase, just in time for the new year.
This tariff hike isn’t the only recent adjustment to connectivity costs. Starlink’s monthly subscription fee, which was initially rejected by the NCC, has now been approved at ₦75,000/month, further adding to the financial strain on consumers. These growing costs could have far-reaching consequences for millions of Nigerians who rely on digital services for e-learning, remote work, and telemedicine, especially as the telecom sector is already grappling with a 29% subscriber loss.
Critics, including NATCOMS, have labelled the hike “insensitive”, warning that it could widen the digital divide and push millions out of the digital economy. Meanwhile, the NCC argues that the adjustment is necessary to sustain the telecom industry and encourage future investments.
For telecom operators, this could be a lifeline to improve service quality and remain competitive. But for many Nigerians, it’s a painful reminder of the economic challenges they face daily. As connectivity becomes increasingly vital in modern life, the real challenge will be ensuring that staying connected doesn’t become a luxury reserved for the wealthy few.
Emmanuel Oyedeji
