MTN Nigeria hikes mobile tariffsMTN Nigeria hikes mobile tariffs

MTN Nigeria has started implementing mobile data price increases following an approval of a 50% tariff increase by the Nigerian Communications Commission (NCC) in January 2025.

Despite soaring inflation and the devaluation of the Naira, the Nigerian telecom sector had kept tariffs unchanged for 11 years.

Telecom operators had argued that the existing tariffs were unsustainable and failed to account for inflation and the Naira's devaluation, asserting that the recent adjustments were crucial to maintaining service quality.

"It's not a 50% increase on every plan, but rather an across-the-board adjustment. Some plans remain unchanged to ensure we keep the grassroots connected. For instance, the 2.5GB daily plan at 600 Nigerian Naira (US$0.40) has not been affected," an MTN Nigeria executive told TechCabal anonymously.

MTN Nigeria tariff increases

Although a 50% hike was approved, MTN's price changes vary across different plans.

The revised prices now feature a 1.8GB monthly plan for N1,500 ($1), replacing the previous 1.5GB plan priced at N1,000 ($0.66).

The 20GB plan has been adjusted to N7,500 ($5), up from N5,500 ($3.65), while the 15GB plan now costs N6,500 ($4.30), rising from N4,500 ($3).

Larger bundles have seen more significant increases, with the 90-day 1.5TB plan jumping from N150,000 ($100) to N240,000 ($160), and the 600GB 90-day plan increasing from N75,000 ($50) to N120,000 ($80).

Related:MTN grows revenue, but naira slump pulls profit down

Nigerian telcos maintained unchanged tariffs for 11 years, even in the face of currency devaluation. (Source: Image by senivpetro on Freepik)

Many MTN Nigeria subscribers are unhappy with the tariff increases at an unfavorable economic time.

One subscriber voiced their frustrations on X, highlighting how the price hike from N2,000 ($1.32) to N6,000 ($4) will severely impact their ability to surf the Internet.

Responding to the user, MTN Nigeria said the price adjustments enable the company to serve customers better.

That response also comes at a time when Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) is demanding that telecom operators improve network quality following the tariff hike.

Although tariff increases have not yet been reported from Airtel Nigeria and Globacom, because of the approval by the NCC, all Nigerian operators will likely implement these increases.

Naira devaluation impacts telco results

Telecom operators in Nigeria have been feeling the pinch of the Naira devaluation.

In August 2024, MTN Group reported a half-year loss as the sharp devaluation of the Nigerian naira impacted its earnings.

The company reported a loss before tax of R9 billion (US$508 million at the time) in the six-month period ended June 30, 2024, compared with a restated profit before tax of R8.3 billion ($464 million at the time) a year earlier.

Nigeria is MTN's biggest market and so the naira slump had a significant impact on the group's service revenue, which dropped by 20.8% year-on-year (YoY) to R85.3 billion ($48 billion at the time). Had currency remained constant, service revenue would have increased by 12.1%.

"The sharp devaluation of the naira over the period had the most significant impact on reported results," MTN Group President and CEO Ralph Mupita said when the results were released.

In October 2024, Airtel Africa's revenue for the first six months of the financial year was down almost 10% on the back of currency devaluations in four key markets.

Currency devaluations, particularly in Nigeria, impacted the group's revenue, which was down 9.7% to $2.37 billion for the half year. If the currency had remained constant, revenue would have grown by 19.9% when compared to the same half the previous year.