Nigeria Raises Telecoms Tariffs by 50% in First Hike Since 2013
TLDR
- The Nigerian Communications Commission (NCC) has approved a 50% increase in telecom tariffs
- The move is in response to rising operational costs faced by telecom operators
- Nigeria's economy has experienced significant inflationary pressures following President Bola Tinubu's economic reforms
The Nigerian Communications Commission (NCC) has approved a 50% increase in telecom tariffs, responding to rising operational costs faced by telecom operators. Operators had initially requested a 100% hike, but the regulator opted for a lower adjustment, citing ongoing industry reforms aimed at long-term sustainability.
The NCC stated that tariff rates have remained unchanged since 2013, despite escalating costs. The adjustment seeks to address the revenue gap while ensuring uninterrupted service delivery. Nigeria's economy has experienced significant inflationary pressures following President Bola Tinubu's 2023 economic reforms, which included naira devaluation and the removal of fuel subsidies.
Those changes initially boosted economic growth but caused sharp cost increases across sectors. MTN Nigeria Communications Plc’s shares jumped after the announcement on Monday, rising the maximum 10% to 256.30 naira by 11:10 a.m. in Lagos, the commercial capital. Rival Airtel Africa Plc was unchanged at 2,156.90 naira.
Daba is Africa's leading investment platform for private and public markets. Download here
Key Takeaways
The tariff increase comes amidst economic challenges, including a collapsing naira and surging inflation. With over 224 million telecom subscribers as of December 2023, the decision significantly impacts Nigerian households and businesses. MTN Nigeria, with 87 million subscribers and a 38.79% market share, saw its shares surge 10% to 256.30 naira following the announcement. Rival Airtel Africa's stock remained unchanged at 2,156.90 naira. The NCC acknowledges the financial pressures on consumers but emphasizes that the adjustment will support operators in enhancing network quality, customer service, and coverage. The move highlights the delicate balance between operational sustainability and consumer affordability in Nigeria's telecom sector.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.