‘Fix the Network First’: Nigerians React To Planned Telecom Tariff Hike

As the Federal Government approves the first telecom tariff hike in over a decade, Nigerians are calling on mobile network operators to justify the increase with significant service improvements.

For years, subscribers have lamented poor network quality, citing frequent call drops and slow data speeds.

They argue that higher tariffs should result in better services. However, telecom companies like MTN Nigeria and Airtel defend the hike, citing inflation, foreign exchange instability, and rising diesel prices.

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EKO HOT BLOG reports that Telecom operators, serving over 150 million subscribers and contributing nearly 20% to Nigeria’s economy, say the increase is necessary to address insufficient infrastructure investments. Sources indicate a 40-50% hike is imminent, with the Nigerian Communications Commission (NCC) set to announce it soon. Initially, operators proposed a 100% increase, but Communications Minister Dr. Bosun Tijani clarified that the hike would be less severe.

The NCC recently met with consumer groups, including the National Association of Telecommunications Subscribers (NATCOMS), whose president, Adeolu Ogungbanjo, demanded accountability from operators. He stated that while the hike could help sustain services, it must not disproportionately affect low-income users.

Subpar network performance has been attributed to insufficient investment and challenges like naira devaluation and subsidy removal. Frequent fibre-optic cuts in 2023 cost telcos N35.4 billion, prompting President Bola Tinubu to criminalize telecom vandalism through a new bill.

Meanwhile, telecom operators have committed to reinvesting revenue from the tariff hike into network upgrades. MTN CEO Karl Toriola stated that the increases would be capped and tied to service improvements, with the NCC ensuring compliance.

‘Fix the Network First’: Nigerians React To Planned Telecom Tariff Hike

As Nigeria’s telecom sector grapples with surging energy costs, heavy taxation, and inflation, experts argue that a tariff hike is inevitable. However, consumer advocacy groups stress that any increase must come with noticeable service enhancements to justify the added cost to Nigerians.

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