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Nigerian telecommunications companies have begun implementing a 50% tariff increase, approved by the Nigerian Communications Commission (NCC), despite objections from lawmakers who want to halt it due to the economic challenges many Nigerians are facing.
On Tuesday, the House of Representatives directed the NCC and the Minister of Communications to suspend the price hike. Lawmakers argue that the increase comes at a time when inflation and the removal of fuel subsidies are already putting a heavy strain on the public.
The tariff hike, which started on Monday, has already been put in place by MTN, Nigeria’s largest telecom provider. However, other companies like Glo, Airtel, and 9mobile have yet to announce their updated prices.
MTN confirmed that some of its data plans have already seen significant price hikes. For example, the 1.5GB monthly plan went from N1,000 to N1,500, and the 20GB plan increased from N5,500 to N7,500. Prices for larger bundles have gone up even more, with a 90-day 1.5TB plan now costing N240,000, up from N150,000.
While MTN has begun raising prices gradually, other companies, including Globacom and Airtel, have indicated that they will soon follow suit.
The decision has sparked protests, with some lawmakers arguing that the increase will worsen poverty and make it harder for small businesses and workers in the informal sector. Oboku Oforji, a member of the House of Representatives, pointed out that while telecom operators justify the hike by saying it’s needed to improve services, Nigerians are already struggling with rising costs of living.
Oforji and other lawmakers have called for improvements in telecom services before any price increase. They argue that affordable access to telecommunications is crucial for progress in areas like education, healthcare, and business.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) supports the tariff hike, saying it is necessary to sustain the telecom sector, which has suffered from underinvestment. ALTON’s Chairman, Gbenga Adebayo, explained that the price review is vital to keep the industry from collapsing.
Despite opposition, the NCC has defended its decision, citing the need for the telecom sector to remain financially sustainable. However, groups like the National Association of Telecommunications Subscribers and the Nigeria Labour Congress have continued to push back, calling for the hike to be rolled back or reduced.
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