January 14, 2025
By Idris Buba
In response to the meeting between minister of communication, Innovation and Digital Economy, Dr. Bosun Tijani with telecom operations following years of agitation and advocacy by telecom operators for a review of the current tariff regime, which was last adjusted in 2013, Nigerians currently await the a new tariff regime for the telecommunications sector, that will see hike in costs of data, voice, and SMS services
The Nigerian Communications Commission (NCC) would any moment from now announce a new tariff regime for the telecommunications sector.
The telcom operators had cited the astronomical rise in cost operations fueled by the forex crisis and the rising inflation in the country as justification for their demands, claiming that other players across all sectors of the economy have adjusted their prices accordingly,
The operators, explained that other sectors have adjusted their prices to meet services demand except telecoms where the regulator has withheld the approval for price adjustment.
READ MORE; Nigeria’s Telecom Sector Hopeful Of Investment in 2025 Due To Forex Stability
However, after a meeting with the minister, who was unequivocal in dismissing the 100% increment requested by the telecom operators, the coast now seems clear for price increments in the interest of the industry’s sustainability and service delivery.
Although the NCC is yet to reveal the percentage increment to be implemented, meanwhile, based on the latest data released by the International Telecommunications Union, ITU, a comparative analysis of the cost of 2GB of data, showed that data is cheaper in Nigeria compared to South Africa, Kenya, and Ghana.
Results from the union’s ICT Services Affordability Report 2023, indicated that 2GB data cost $2.66 in Ghana whereas same costs $2.35 in Nigeria.
The same 2GB data package costs $2.92 in Kenya and $7.98 in South Africa, while the Zimbabweans pay the highest cost for data at $10.23 per 2GB.
READ MORE; Telcos Seek NCC Nod For A Proposed 100% Tariff Hike.
However, an overview of the economic power of the subscribers, say otherwise, for instance, a look at the Gross Domestic Product, GDP, Per Capita of each of the four countries showed that Nigeria also has the lowest GDP Per Capita compared to South Africa, Ghana, and Kenya.
South Africa, which currently has one of the most expensive data on the continent is an Upper-Middle Income country according to the World Bank with the country’s GDP Per Capita at $15,194.2 as of 2023, while Ghana a lower-middle-income country has a GDP Per Capita that is far above Nigeria’s at 7,543.0.
For Nigeria telecom operators, there are more then enough reasons to increase tariffs for voice, data, and SMS services, and not just a slight adjustment but 100% increment.
According to the CEO of Airtel Nigeria, Mr. Dinesh Balsingh, operating expenses, have surged by over 300% in the last 18 to 24 months alone and increments are critical for maintaining high-quality services and enabling further advancements in Nigeria’s digital transformation journey.
