Nigeria approves 50% telecom tariff increase for mobile and data subscribers.

Mobile telephone and data subscribers in Nigeria will now face higher costs after the government approved a 50% increase in tariffs, as the country struggles with one of its worst cost of living crises in decades. The Nigerian Communications Commission (NCC), the industry regulator, explained earlier this week that the decision to approve the tariff hike was made "in response to prevailing market conditions."

According to the NCC, tariffs in Africa’s fourth-largest economy have remained unchanged since 2013. However, the recent hike comes at a time when inflation in the country has surged to a near 30-year high of 34.8%, compounding economic challenges for Nigerians.

Adebisi Olanrewaju, a 51-year-old trader, expressed frustration, saying, "This is not the right time to increase the cost of making calls. Things are very expensive, and this increase will only add to our problems." The increase will raise the minimum price of telephone calls from 6.40 naira to 9.6 naira (approximately $0.0062) per minute.

In its announcement on Monday, the NCC explained that the approved adjustment aims to bridge the significant gap between rising operational costs and current tariffs while ensuring service delivery to consumers remains uncompromised.

Telecommunications companies in Nigeria had initially requested a 100% increase in tariffs due to mounting operational costs. However, the operators eventually agreed to the government’s proposed prices. Gbenga Adebayo, chairperson of the Association of Licensed Telecom Operators of Nigeria, emphasized the necessity of the tariff review, stating that it had become a matter of survival and sustainability for the sector. He warned that without the adjustment, the country’s telecommunications industry would likely have faced significant service disruptions.

The Federal Competition and Consumer Protection Commission, Nigeria’s consumer protection agency, urged that the tariff hike should lead to "demonstrable and tangible service enhancements," according to a statement released on Wednesday.