The Nigerian Communications Commission (NCC) has approved a 50% increase in call tariff, raising the average cost of calls to N16.5 per minute. This adjustment, announced on Monday, could generate over N6.74tn in revenue for telecom operators in 2025, assuming call volumes remain stable.
Based on the 2023 national telephone traffic data, Nigerians spent approximately 408.5 billion minutes on local calls. MTN led the market, recording 122.7 billion minutes of outgoing traffic and 123.8 billion minutes of incoming traffic. With the new tariff, MTN’s projected revenue from calls is expected to exceed N4tn, accounting for over 60% of the market. Airtel is anticipated to generate N1.78tn, followed by Glo at N536.2bn. Smaller players like Smile and Ntel are projected to earn N5.7bn and N13.1bn respectively.
The NCC tariff increase also impacts SMS pricing, with costs rising to N6 per message. Based on the 2023 SMS traffic data, the industry could generate N137.84bn in revenue in 2025. MTN is poised to dominate this segment as well, with projected earnings of N100.72bn from its SMS traffic, representing over 73% of the market. Airtel, Glo, and smaller operators like EMTS and Smile are expected to contribute the remaining revenue.
Despite the growing popularity of over-the-top messaging platforms like WhatsApp and Telegram, voice calls and SMS remain significant revenue drivers for telecom operators. However, the pricing adjustments may influence consumer behavior, pushing more users toward cost-free alternatives.
Also, The NCC’s Director of Public Affairs, Reuben Muoka, explained that the tariff adjustment was necessary to address rising operational costs and maintain market stability. The approved 50% hike is notably lower than the 100% increase initially proposed by some operators.
This decision highlights the evolving dynamics of Nigeria’s telecommunications industry, where dominant players like MTN and Airtel continue to shape the market, while smaller operators struggle to gain significant traction. As the industry adapts to these changes, consumer responses to higher costs will play a critical role in shaping future revenue trends.
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