Notice your data bundle disappearing faster than it used to,
or airtime running out in a flash? You’re not imagining it. Across Nigeria
there’s growing concern about mobile network price rises — higher costs for
data bundles, calls, and fewer freebies or promotions. For many people who rely
on their phones for work, school and family, even small increases bite hard. At
the same time, the companies that provide those services say they face real
cash pressures. Here’s a plain-language look at what’s happening, why operators
say they must raise tariffs, and how you can respond.
What kind of price changes are showing up?
You may already have noticed one or more of these shifts:
- Data
bundles that cost more or deliver less.
- Per-minute
call rates inching up — for both local and international calls.
- Fewer
or smaller bonus data promos and discounts.
- Less
generous short-term offers that used to cushion monthly bills.
For many households and small businesses, the phone is the
main (sometimes only) digital lifeline — so these changes matter.
Operators’ main explanation: it’s expensive to run a
modern network
Mobile network companies (MTN, Glo, Airtel, 9mobile and
others) say the hikes aren’t arbitrary. They point to two big financial
pressures that eat into profit and make continued investment difficult: the
fallout from currency volatility and sharply rising operating costs.
1. The foreign-exchange squeeze
A lot of the high-tech gear and software telcos depend on —
base stations, fiber, servers, licensing and even specialist maintenance — is
priced in foreign currency. When the naira weakens, those dollar-priced imports
cost far more in local currency. That problem also affects any loans or vendor
contracts denominated in foreign currencies: repayments become heavier in naira
terms. In short, the same equipment and services now require much more local
cash than before.
2. Rising day-to-day costs
Even setting FX aside, running a telecom network in Nigeria
is getting pricier across the board:
- Fuel
and power: Unreliable grid electricity forces networks to run
thousands of towers on generators. Rising diesel prices mean big daily
fuel bills.
- Security
and theft prevention: Protecting sites and long stretches of fiber —
and repairing vandalism or theft — is expensive and ongoing.
- Government
fees: Multiple taxes, levies and sometimes inconsistent local charges
add to the cost base.
- Right-of-way
and permits: Laying fiber or erecting towers often incurs fees and
bureaucratic costs that vary by location.
- Skilled
staff: Retaining engineers and technicians requires competitive pay —
often benchmarked against international rates.
- General
inflation: Everything from office expenses to transport rises in
price, pushing operational budgets higher.
Together, these factors make it harder for operators to run
reliable networks without adjusting revenue from customers.
The trade-off: affordability vs. service sustainability
From the consumer angle, any price increase is painful —
especially when incomes aren’t growing. But MNOs warn that without higher
returns they will struggle to:
- Keep
current service quality stable (fewer dropped calls, faster speeds).
- Expand
coverage into under-served towns and villages.
- Roll
out new technologies more widely (like broader 5G coverage).
That places the Nigerian Communications Commission (NCC) in
a balancing act: protect consumers from unfair hikes while ensuring operators
remain solvent and able to invest.
Practical moves you can make now
While the debate continues, there are simple steps to
stretch your airtime and data further:
- Monitor
usage: Check what apps and services are using the most data each month
and cut or limit them where possible.
- Compare
plans: Don’t assume your current provider is best value — offers and
bundles change often.
- Use
Wi-Fi smartly: Download updates and stream heavy content on trusted
Wi-Fi at home or work.
- Choose
cost-efficient bundles: Some data plans prioritize social apps or
streaming; pick what matches your habits.
- Top
up strategically: Buy in bulk when promotions are available rather
than frequent small top-ups.
Bottom line
The push to raise mobile tariffs in Nigeria stems from real,
measurable cost pressures — foreign-exchange exposure, fuel and energy bills,
security and regulatory fees, and general inflation. But for many users the
result is harder-to-afford connectivity. The right solution is likely somewhere
in between: targeted consumer protection and smarter cost-management by
operators, plus transparent oversight from regulators.
Do you think the reasons telecom companies give are
reasonable, or should they be doing more to cut their own costs before passing
them on to customers?
No comments:
Post a Comment