In a move that’s set to impact millions of Nigerians, the Nigerian Communications Commission (NCC) has approved a 50% increase in telecommunications tariffs. This decision marks the first tariff hike in nearly eleven years and is aimed at safeguarding the sustainability of the industry.

The telecom sector has been facing significant financial losses due to the devaluation of the naira and increasing operational challenges. To put this into perspective, the sector contributes substantially to Nigeria’s Gross Domestic Product (GDP) and employs thousands of Nigerians.

So, what led to this decision? Telecom operators had been pushing for a tariff hike since 2024 to offset losses caused by inflation and currency devaluation. In August 2024, telecom companies even considered implementing a load-shedding strategy to manage their services.

After several rounds of discussions, the NCC finally agreed on a 50% tariff hike, which is expected to generate over ₦6.74 trillion in revenue for telecom operators in 2025. This increase will affect both voice and data services, with the average cost of calls likely rising from ₦11 to ₦16.5 per minute.

While the decision is likely to be met with mixed reactions, the government emphasizes that the changes are essential for the long-term health of the sector. The NCC has ensured that the tariff adjustments are based on data-driven decisions that take into account the long-term sustainability of the sector.

Nigerians can expect significant changes in their telecom services with these tarrif hikes. The coming months will reveal how these changes unfold and how telecom operators and consumers adjust to the new pricing structure.