By Chinenye Anuforo
For over a decade, telecom operators protested to have their charges hiked to reflect market realities, especially in Nigeria where inflation has maintained an upward trend.
According to them, the hike was necessary if quality services were to be guaranteed.
Their prayers were answered in January this year when the federal government’s Nigerian Communications Commission (NCC) approved a 50 per cent hike in tariffs.
But there was a caveat: An improvement in services provided by operators, MTN, Airtel, Glo and 9Mobile.
On the flip side, the approval felt like a betrayal and exploitation of already hurt citizens who are battling multidimensional poverty.
Telecom consumers flooded the social media to vent their anger and wondered why the federal government caved in at a time economic hardship has reached frightening dimensions.
To douse the tension, telecom subscribers took solace in the anticipated improvement in services as promised by the operators.
Unfortunately, it turned out to be a hoax as they are now trapped in a costly paradox: paying exorbitant prices for increasingly unreliable services.
Players in the Micro Small and Medium Enterprises (MSMEs) ecosystem are wailing that the costly tariff, paired with epileptic services, is like a death knell to their businesses.
They are calling on the federal government to return to the status quo as current events show there is no justification for a tariff hike.
Ronke Olawale, a food vendor, lamented: “A client calls you, but you can’t hear him. You try to call back, you’re told the number is switched off. You send an SMS, it doesn’t deliver, you go to WhatsApp, the network is poor. Your message may not drop for minutes. When it reluctantly does, it does not get blue-ticked, meaning it’s not received at the other end who is also battling similar network issues. Please, how will any business survive under this circumstance?”
John James, a PoS operator, said the hike in tariff remains a horrible thing.
“You can’t do transactions. Network this, network that. Till when? I prefer the quality of service we had before the tariff hike. Can we return to that space?”
Voice calls have soared from N11 to N16.50 per minute, SMS from N4 to N6 and 1GB of data from N350 to N525.
Despite the increase across a broad spectrum of services, the challenges the operators promised to address if tariffs were hiked still persist. They include: frequent network outages, depressingly slow internet speeds, dropped calls, undelivered SMS (but charged), fluctuating network connectivity, data rollover challenges, illegal credit deductions and abysmal customer service.
Commenting on the challenge, the Chief Executive officer, Jidaw Systems Limited, Jide Awe, said: “The disappointment is justified given the continued poor service quality despite the recent tariff hike.
“Unfortunately, the increased cost of telecom services is particularly harsh due to the rising cost of living. The situation is not supportive of the right to digital inclusion, which is an essential right in the digital era”, he said.
According to subscribers, the impact of the service decline extends far beyond mere inconvenience as impact has scathing social and economic consequences as telecommunications form the foundation of a modern economy.
They enable e-commerce, remote work, education, healthcare and a variety of other critical activities.
“When these services are unreliable or excessively expensive, it has a significant negative impact on economic growth”, Mr. Fisayo Adeyemi, a telecom expert with over two decades of experience, pointed out.
He added: “Businesses, particularly small and medium-sized enterprises (SMEs), are struggling to compete in a digital landscape hampered by poor infrastructure. E-commerce platforms face delivery delays and payment processing issues, while online learning initiatives are crippled by unreliable internet connectivity and high data costs. Even crucial sectors like telemedicine and precision agriculture are suffering.”
Ifeanyi Duru, a telecommunications consumer, who also is a business owner amplified Adeyemi’s concerns and emphasised the consistently poor service provided by major telecom operators.
“Network outages, dropped calls, and painfully slow internet speeds are not just inconveniences; they are major disruptions to daily life and business operations,” Duru said.
He highlighted the importance of greater transparency from operators regarding network upgrades and maintenance, as well as more stringent regulatory oversight.
The NCC has come under increasing scrutiny for allegedly failing to enforce consumer protection regulations and ensure fair pricing practices. “Could this be a case of weak regulatory oversight?” Awe questioned and highlighted the need for a balance between the interests of subscribers and operators.
However, despite the widespread outcry, telcos have offered assurances of future improvements.
At the Telecoms Forum in Lagos recently, MTN Nigeria’s Chief Corporate Services and Sustainability Officer, Tobechukwu Okigbo, promised that subscribers would experience significant improvements within three months of the tariff hike’s implementation. He cited rising inflation as justification for the price increase, stating, “I assure Nigerians that before three months, Nigerians will begin to experience improved service quality across networks.”
Similarly, Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), acknowledged the financial strain on operators, noting, “I think we will go through, first, a period of recovery, because of the deep hole that we have suffered in our finances. And in recovery, we hope things get better.”
However, consumers remain skeptical. They demand accountability and tangible improvements in service quality, and they are calling on the NCC to step up its regulatory oversight.
Awe added that beyond accountability, telcos must innovate and become Technology Companies (TechCos). “Telcos must seize opportunities in the rapid evolution of Cloud Computing, Edge Computing, 5G, Artificial Intelligence (AI), and the Internet of Things (IoT) to expand beyond traditional connectivity services and become technology enablers. This transition should be a critical survival strategy for Nigerian telecom operators, allowing them to diversify revenue streams and reduce reliance on tariff hikes.”
As the three-month deadline approaches, Nigerians are watching closely, hoping that the promised improvements will finally materialize. Until then, they remain trapped in a costly paradox, paying more for less, and demanding a resolution to the growing crisis in the nation’s telecommunications sector.
Interestingly, the Senate, last Wednesday, waded into the tariff hike issue and urged the federal government to engage telecommunications providers in a bid to review pricing and make internet services more accessible to Nigerians.
Emphasising the need for fair and sustainable digital access, the upper chamber also called on the federal ministry of telecommunications and digital economy to develop a comprehensive policy framework that ensures equitable pricing of internet services across the country.
The resolution followed a motion sponsored by Senator Asuquo Ekpenyong (Cross River South) during plenary, which emphasised the growing public outcry over the sudden increase in data tariffs by major telecom operators.
With millions of Nigerians depending on internet access for business, education and employment, the soaring cost of mobile data has raised serious concerns and highlighted the need for urgent regulatory measures to strike a balance between affordability and industry sustainability.