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Data Plans And Pricing Hike: Nigeria’s Telecom Industry In Transition

Published

1 month ago

Feb 22, 2025.

Nigeria’s telecom sector is undergoing major changes as data plans face steep price hikes amid rising operational costs. Starting January 24, 2025, the Nigerian Communications Commission (NCC) approved a 50% tariff increase for telecom companies to help cover growing expenses.

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EKO HOT BLOG gathered that however, many networks have raised their prices by nearly 200% on average, resulting in much higher bills and reduced data volumes for consumers.

MTN’s Price transition: A Closer Look

MTN, one of the nation’s leading operators, has become the focal point of the controversy.

Nigeria’s Telecom MTN

The approved tariff hike remains in effect despite the network’s recent appeal for customer forgiveness. Under the new regime, MTN’s data pricing has undergone significant changes:

A monthly plan offering 1.8GB now costs ₦1,500, up from ₦1,000.
Daily plans have also seen steep increases, with a 2GB package rising from ₦500 to ₦750, and a 2.5GB package moving from ₦600 to ₦900.
Weekly plans are not spared either—a 7GB plan now costs ₦3,000 compared to the previous ₦1,500 (which originally offered 6GB).
For heavy data users, the adjustments are even more pronounced: a 1.5TB plan has leaped from ₦150,000 to ₦240,000, while a 600GB plan increased from ₦75,000 to ₦120,000.
Voice Call Rates:
Although specific call pricing details were not itemized in official communications, industry insiders indicate that call tariffs have experienced a moderate increase—ranging from 20% to 50%—to help offset rising operational costs and FX losses. This means that while data costs are notably higher, consumers will also notice a slight uptick in their call expenditures.

Despite MTN’s entreaty for customers to “forgive and forget” the hike, the figures remain non-negotiable, as the approved 50% increase by the NCC continues to underpin the revised rates.

Airtel Nigeria and Glo: Competitive Responses

Not to be outdone, Airtel Nigeria has also revised its data pricing structure, unveiling a range of new packages on its website. The updated offerings include:

Daily Plans:
• ₦50 for 40MB (valid for one day)
• ₦100 for 100MB (valid for one day)
• ₦200 for 200MB (valid for three days)
• ₦350 for 1GB (valid for one day)
Weekly Plans:
• ₦350 for 350MB (valid for seven days)
• ₦500 for 750MB plus 1GB YouTube Night and 200MB YouTube Music/Spotify (valid for seven days)
• ₦500 for 1GB plus 1GB YouTube Night and 50MB Socials (valid for seven days)
• ₦500 for 2GB (valid for two days)
Monthly Plans:
• 3GB for ₦2,000 (up from 1.5GB at ₦1,200)
• 4GB for ₦2,500 (formerly 3GB at ₦1,500)
• 8GB for ₦3,000 (previously 4.5GB at ₦2,000)
• Additional packages include 10GB for ₦4,000 (from 6GB at ₦2,500), 13GB for ₦5,000 (up from 10GB at ₦3,000), 18GB for ₦6,000 (formerly 15GB at ₦4,000), and 25GB for ₦8,000 (replacing 18GB at ₦5,000).

Consumer dissatisfaction with these changes is evident. Okikiola (@okikiola_Ayoade) voiced his frustration on Airtel Nigeria’s X (formerly Twitter) page, lamenting, “Return our data bundles back. It’s not easy to get money. Data from ₦3,000 for 20GB is now ₦3,000 for 10GB. Why are we suffering for what we are paying for?”

While Airtel’s aggressive pricing adjustments aim to mitigate escalating operational costs, data on Glo’s revised pricing remains less detailed. However, industry observers note that Glo continues to offer competitive packages that strike a balance between affordability and service quality. When evaluating network performance for both calls and data, many consumers remain divided. MTN, with its expansive coverage and improved investor sentiment, is favored by many despite its higher costs, whereas Airtel’s value-oriented packages appeal to cost-conscious users. Glo, meanwhile, is positioned as a reliable alternative but not the best at most regions.

Glo’s Competitive Edge: Data and Call Pricing

Glo is updating its pricing to remain competitive, even as MTN and Airtel have sharply increased their data costs. While exact numbers for Glo’s new plans are still emerging, early reports show that the company is taking a more balanced approach. Its daily and weekly data plans have risen by roughly 50% to 100%, a change that fits the current market and aims to keep customers loyal. In addition, Glo—known for its reliable call quality—has slightly increased voice call tariffs by around 20% to 30%, ensuring it stays attractive for users who value clear communications.

Impact on Consumers and Daily Usage

The price increases are affecting everyday Nigerians in a big way. For those who rely on mobile data for work, online classes, or browsing, these hikes mean the cost of a monthly data plan has nearly doubled. Now, people must either spend more money on data or cut down on their online activities.

Tolani, a 22-year-old MTN subscriber, explains, “We always complain in Nigeria, but we adjust to new situations. I usually get the 25GB plan for ₦6,500. Even though it is now ₦7,500, I still pay for it—but it doesn’t seem to last as long.” Another subscriber, Sharon, adds, “I used to get 15GB for ₦2,000. This price increase feels very frustrating and insensitive. I now pay ₦3,000 for the same plan, and it really annoys me.” Their comments show the strain on household budgets and the growing frustration over rising costs.

Investor Optimism and Market Dynamics

While consumers face higher costs, investors are witnessing gains. MTN’s stock has risen significantly following the tariff increase. In October 2024, shares were around ₦175, but by December they reached about ₦200. In January 2025, the stock jumped over 20% to ₦242 and closed at ₦264, marking a 32.1% increase from January onward.

This strong performance has boosted investor confidence. Financial expert Azeez Lawal expects that if performance and foreign exchange rates remain stable, MTN shares could climb between ₦300 and ₦350 by the end of 2025. For example, investor Kalejaiye, who bought ₦13 million worth of MTN shares at ₦171 each in October 2024, has seen a 54% return, with his investment now valued at approximately ₦20.8 million. The tariff hike is seen as a growth signal—higher prices are increasing revenue per user, which improves profit margins and strengthens market confidence.

The Rationale Behind the Hike

The NCC’s decision is anchored in the need to align tariff rates with the escalating costs of operation—costs that have remained unaddressed since 2013. “Tariff rates have remained static despite rising operational expenses,” stated an NCC press release, noting that the adjustment is essential to maintain uninterrupted service delivery. Furthermore, many telecom operators, including MTN, have been grappling with significant foreign exchange (FX) losses. In the first nine months of 2024 alone, MTN recorded a net FX loss of ₦900 billion, even as its data services generated a formidable ₦2.4 trillion in revenue. The tariff hike, therefore, is a strategic move to offset these losses and ensure the sustainability of telecom operations.

Labor Plans Strike March 1

The situation grows more complex as the Nigeria Labour Congress (NLC) plans a strike on March 1. This action raises concerns about whether telecom services can handle potential labor problems. There is worry that the strike might disrupt service delivery and force telecom companies to change their prices or service plans. While current changes are mainly due to long-term economic issues and foreign exchange losses, the possibility of a strike adds uncertainty that may lead to further adjustments.

Market Implications and Future Outlook

The recent increase in tariffs is not just a price change—it shows a larger shift in Nigeria’s telecom sector. Customers now face higher bills and less data, making them rethink their habits. At the same time, investors are encouraged by strong revenue forecasts and rising profits, as seen in MTN’s growing stock values. Ultimately, the future of the industry depends on how well operators can balance making money with keeping customers happy.

As telecom companies deal with these challenges, the fight for customer loyalty grows stronger. Many will choose based on network performance, especially call quality and data reliability. Since changing networks is not simple, the mix of pricing and quality will decide who wins in Nigeria’s changing telecom market.