One year on, 50% telco tariff hike brings big profits, bigger pain for subscribers

One year on, 50% telco tariff hike brings big profits, bigger pain for subscribers

Exactly one year after the Nigerian Communications Commission approved a 50 per cent increase in telecommunications tariffs, millions of subscribers say service quality has failed to justify the higher costs. The tariff adjustment, which took effect on January 20, 2025, was introduced as a sustainability measure to help operators cope with inflation, a weakened naira and rising diesel prices. Regulators and mobile network operators had assured consumers that the increase would translate into improved quality of service, but many users say network reliability remains poor.

The tariff hike raised the floor price of calls from N6.40 to N9.60 per minute, with a ceiling of N50 per minute, increased SMS charges from N4 to N6, and pushed the cost of 1GB of data to N431.25 from N287.50. Financial results suggest operators benefited significantly. MTN Nigeria reported N3.7 trillion in revenue in the first nine months of 2025 and a profit after tax of N750.2 billion, returning to profitability and declaring an interim dividend. Airtel Nigeria also posted strong results, recording about $699 million (N527.81 billion) in revenue and $376 million in profit after tax for the same period, supported by tariff increases and foreign exchange gains.

Combined, MTN and Airtel earned N5.16 trillion in the first nine months of 2025, about 50 per cent higher than earnings in the corresponding period of 2024, while Globacom and 9mobile did not disclose their financials. Although operators collectively invested about $1 billion in infrastructure last year, including over N560 billion by MTN Nigeria, subscribers continue to complain of dropped calls, one-way audio and rapid data depletion. NCC Quality of Experience reports indicate persistent network challenges, while limited 5G rollout remains concentrated in major urban areas, leaving most of Nigeria’s estimated 177 million active subscribers reliant on congested 4G and 3G networks.

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