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50% Hike: Calls To Cost ₦16.5 Per Minute – Details Of New Tariff Emerge

Published

2 months ago

Jan 21, 2025.

NCC approves 50% hike, raising call costs to ₦16.5 per minute.
Telecom operators projected to earn ₦6.74tn from 2025 traffic data.
Consumer groups oppose hike, demand better service or threaten legal action.

The Nigerian Communications Commission (NCC) has approved a 50% increase in call tariffs, raising the average cost of calls to ₦16.5 per minute.

This adjustment is projected to generate over ₦6.74tn in revenue for telecom operators in 2025, based on 2023 call traffic data, despite potential impacts from free and discounted promotions.

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EKO HOT BLOG reports that in 2023, Nigerians spent approximately 408.5 billion minutes on local calls, with MTN leading traffic at 122.7 billion outgoing and 123.8 billion incoming minutes. The revised tariff positions MTN as the primary beneficiary, potentially earning over ₦4tn, accounting for more than 60% of the market’s total revenue. Airtel follows with ₦1.78tn, Glo with ₦536.2bn, and smaller players like Smile and Ntel collectively generating about ₦18.8bn.

The tariff adjustment also affects SMS charges, increasing the average cost from ₦4 to ₦6. Based on the NCC’s 2023 data, 22.97 billion SMS were sent and received, with MTN expected to earn ₦100.72bn, representing 73% of the projected ₦137.84bn revenue for 2025. Airtel, Glo, and smaller operators will generate ₦26.26bn, ₦8.10bn, and modest revenues, respectively.

NCC stated the hike addresses inflation and rising operational costs while enabling operators to invest in infrastructure and maintain service quality. However, consumer groups and telecom subscribers have raised concerns. The National Association of Telecoms Subscribers rejected the 50% increase, proposing a more moderate hike of 5-10%. The group’s president, Adeolu Ogunbanjo, vowed legal action if concerns remain unresolved, urging operators to explore alternative funding methods, such as public share offerings.

At the new rate of N16.5 per minute, MTN’s combined revenue from outgoing and incoming calls is projected to exceed N4tn, making it the primary beneficiary of the tariff adjustment and accounting for over 60 per cent of the market’s total revenue.

Consumer advocacy groups insist on significant service improvements before accepting the new rates, warning of legal action if standards fall short. The new tariffs, set to be implemented in February, aim to stabilize the sector but face opposition from subscribers citing economic challenges and poor electricity supply.

50% Hike New Tariff

The NCC assured stakeholders of transparency, emphasizing measurable service improvements and ongoing engagement to ensure a balanced approach that protects consumers while sustaining the industry.