Nigerian telecommunications companies are starting to raise their prices for phone and internet services by 50%, a change that has been approved by the Nigerian Communications Commission (NCC). However, this decision has faced pushback from lawmakers who argue that many Nigerians are already struggling financially.
On Tuesday, a group in the House of Representatives told the NCC and the Minister of Communications to pause this price increase. They explained that with rising inflation and the removal of government fuel subsidies, many people simply cannot handle higher costs for phone services. This price hike was supposed to take effect across the country starting Monday. Although MTN, Nigeria’s largest telecom provider, has begun to adjust its prices, other major companies like Glo, Airtel, and 9mobile have not yet announced their new rates.
An MTN executive, who asked to remain anonymous, confirmed that the company is gradually updating its prices, primarily for data plans. For instance, a 1.5GB monthly data plan that cost 1,000 Naira is now 1,500 Naira for a slightly larger 1.8GB plan. Other plans have seen even bigger price increases; the cost of a 15GB plan rose from 4,500 Naira to 6,500 Naira, while a 20GB plan jumped from 5,500 Naira to 7,500 Naira. Bigger plans, like one offering 1.5 terabytes over 90 days, soared from 150,000 Naira to 240,000 Naira.
An official at Globacom mentioned that while they haven’t changed their prices yet, it could happen soon. An Airtel executive noted that this price increase is industry-wide, which means all companies are expected to follow suit.
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The House of Representatives took action after a member raised a pressing concern during a session. They objected to the planned price hike, claiming that telecom companies have been asking for higher tariffs for over eleven years, but now just isn’t the right time. With inflation reaching record highs and many people already facing financial strain, the timing of this increase feels unfair. Critics say telecommunication companies are prioritizing profit over the needs of ordinary Nigerians who are dealing with high costs of living and unreliable service.
One lawmaker emphasized that before raising prices, telecom companies must first improve their service quality. He pointed out that in wealthier countries, people often have only one phone because the service is reliable. However, in Nigeria, it’s common to have multiple phones just to ensure a connection works. He argued that any price increase should wait until services improve.
Industry representatives, on the other hand, defend the price hike as essential for maintaining the health of the telecom sector. They argue that without this adjustment, the quality of service will continue to decline due to insufficient investment in infrastructure. The chairman of a telecom operators’ group acknowledged that while he understands the public’s concerns about rising prices, this increase is necessary to keep the telecom industry viable.
The NCC announced the price hike earlier in January, stating that it was necessary due to increasing operational costs and the need for long-term sustainability. However, consumer advocacy groups are unhappy about the hike and have discussed legal actions to effectively roll it back to a more manageable increase of 10%. The Nigeria Labour Congress has also opposed the hike, suggesting it be reduced to only 5%, and even threatened to organize protests, although those didn’t end up happening.
Overall, this situation highlights a complicated balance between the needs of telecom companies to stay profitable and the financial realities faced by ordinary Nigerians.
