The Nigerian government has approved a 60% increase in telecom tariffs, a decision that has been awaited by service providers for over a decade. Dr. Bosun Tijani, the Minister of Communications, Innovation, and the Digital Economy, confirmed the changes during a recent announcement. The new rates will see the cost of phone calls rise to N18.33 per minute from N11, SMS charges increase to N6.67 from N4, and the price of a 1GB data bundle soar to N479.17 from N287.5.
The timing of the hike could not be more challenging for Nigerians, as the country continues to grapple with inflation and high living costs. The price increase is expected to have a significant impact on daily communication and data usage, particularly for the millions of Nigerians already facing financial strain. While smartphone users may turn to alternatives such as WhatsApp for calls and messages, there are concerns about those without smartphones who may struggle to cope with the rising costs of traditional mobile communication.
The financial impact of the tariff hike is considerable. For instance, a user who spends 30 minutes daily on phone calls will face an annual increase of N80,300, while those sending 10 SMS messages per day will see an additional N9,745.50 annually. Data users, who purchase one 1GB data bundle every three days, will experience a rise in their annual costs by N23,397.74. Altogether, the average Nigerian consumer could see their telecom expenses rise by N113,443.24 per year, a heavy burden for many.
With over 200 million mobile subscribers in the country, this hike is set to ripple across the economy, affecting both individual users and small businesses that rely on affordable telecom services. Small businesses, in particular, may face increased operational costs, potentially slowing down economic growth. Furthermore, as higher data costs limit online access, individuals could be cut off from essential digital services, such as education and remote work, deepening the digital divide.
While the government and telecom operators argue that the increase is necessary to sustain the telecom industry amidst high operational costs, the impact on consumers could be far-reaching. To mitigate these effects, there are calls for the government to consider subsidies for low-income users, invest in digital infrastructure, and promote digital literacy. Balancing the needs of the telecom sector with those of Nigerian consumers will be key to ensuring that both can thrive in an increasingly digital economy.
