News

NCC Approves 50% Tariff Hike: MTN, Airtel, Glo, and 9mobile Implement New Data Plans

The Nigerian Communications Commission (NCC) has officially sanctioned a 50% increase in telecommunications tariffs, paving the way for major operators like MTN, Airtel, Glo, and 9mobile to adjust their data plan pricing structures. This decision marks the first significant tariff adjustment since 2013, reflecting a response to the escalating operational costs faced by telecom providers in Nigeria’s challenging economic environment.

Following the NCC’s approval, telecom giants have swiftly moved to revise their pricing. For MTN, the cost of a 25GB data plan has now surged to ₦9,750, a sharp rise from the previous ₦6,500. Similar increases are seen across other data bundles: 10GB, 5GB, and 1GB now stand at ₦5,250, ₦2,250, and ₦525 respectively. Airtel has also adjusted its offerings, with a 23GB data plan now costing ₦9,000, up from ₦6,000, while 10GB has been priced at ₦4,500, previously ₦3,000.

9mobile has updated its 22GB data plan to ₦7,500 from ₦5,000, and its 9.5GB plan now costs ₦3,750, an increase from ₦1,500. Glo, too, has aligned its data pricing with these new rates, though specific details on Glo’s revised plans were not immediately disclosed.

This tariff hike has stirred significant debate among consumers and industry watchers. While the NCC justified the increase as necessary for the sustainability of the telecom sector, allowing operators to invest in infrastructure and service quality, it has raised eyebrows and concerns among many Nigerians already grappling with a high cost of living. Posts on X reflect a mix of frustration and acceptance, with some users highlighting the impending financial strain on everyday citizens. In contrast, others acknowledge the need for telecom companies to remain viable amidst rising operational costs.

The Nigerian stock market responded positively to the news, with the Nigerian Exchange Ltd. (NGX) witnessing a gain of N472 billion, or 0.75 percent, on Tuesday. Investors’ confidence in telecom stocks like MTN Nigeria, alongside other major banks, drove this upward trend, suggesting market approval of the tariff hike in terms of potential profitability for telecom operators.

The National Association of Telecommunications Subscribers (NATCOMS) has strongly opposed the hike, arguing that it was implemented without adequate consumer consultation. They have threatened legal action against the NCC, demanding a rollback or at least a more modest increase. NATCOMS president, Deolu Ogunbanjo, has publicly criticized the NCC for what he describes as an “excessive” tariff adjustment, suggesting that a 5% to 10% increase would have been more reasonable under the current economic conditions.

As telecom companies roll out their new pricing, the next few weeks will be crucial in observing consumer behavior shifts, potential market adjustments by smaller operators, and any regulatory or legal developments following the outcry from consumer groups. The NCC has assured that it will monitor the implementation of these new rates to ensure they are applied transparently and fairly, though this assurance does little to quell the immediate backlash from subscribers.

This tariff adjustment comes at a time when Nigeria’s economy is navigating through inflation and currency devaluation, making the cost of living a pressing issue for many. How this impacts digital inclusion, internet usage, and the overall telecom sector in Nigeria remains to be seen, but it certainly sets the stage for a contentious period ahead in the nation’s telecommunications landscape.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *