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Nigerian Telecom Sector Faces Rising Costs and Poor Service Quality Nigerian Telecom Sector Faces Rising Costs and Poor Service Quality

The Nigerian telecommunications sector, once hailed as a driver of economic growth and digital transformation, is now under scrutiny as consumers face a double burden of rising costs and persistently poor service quality. With the recent 50% increase in telecom tariffs approved by the Nigerian Communications Commission (NCC) in January 2025, frustrations are mounting as subscribers struggle with unreliable networks, slow internet speeds, and frequent outages. This situation is not only affecting individual users but also impeding business growth and economic productivity across the country.

Rising Costs and Consumer Discontent

The tariff hike has significantly increased the cost of telecom services in Nigeria. Voice call rates have risen from N11.00 to N16.50 per minute, SMS charges from N4.00 to N6.00, and the cost of 1GB of data has jumped from N350.00 to N525.00. The NCC justified the increase as necessary to enable telecom operators like MTN, Airtel, Glo, and 9Mobile to invest in infrastructure and improve service quality. However, consumers have yet to see the promised benefits.

Instead, complaints about dropped calls, aborted SMS deliveries, and slow internet speeds have become widespread. Subscribers in both urban and rural areas report feeling exploited, paying higher prices for services that fail to meet basic expectations. For rural communities, which already face limited connectivity, the situation is even more dire, as high costs and poor service further isolate them from digital opportunities.

Impact on Businesses and the Economy

The poor state of Nigeria’s telecom services is having a ripple effect across various sectors of the economy. Businesses, particularly small and medium-sized enterprises (SMEs), are struggling to operate in a digital landscape hampered by unreliable connectivity. E-commerce platforms face delays in payment processing and inventory management, while online retailers lose sales due to network disruptions. For entrepreneurs like Mama Dupe, a business center operator at the University of Lagos, unreliable internet access has led to a loss of customers and revenue. “I have to test multiple SIM cards just to find a network that works, and even then, it disconnects within minutes,” she lamented.

Education is another sector bearing the brunt of poor telecom services. With many universities adopting online learning, students and lecturers alike face significant challenges due to unstable networks. Miss Irene Njoku, a student at the University of Lagos, described her frustration: “Most of the time, our lecturers can’t even connect for online classes. It’s a waste of time and resources.”

Similarly, industries like telemedicine and precision agriculture, which rely heavily on dependable communication networks, are struggling to reach their full potential. Farmers, for instance, are unable to access critical information such as weather updates and market prices, limiting their productivity and income.

Challenges in the Telecom Sector

The issues plaguing Nigeria’s telecom sector are multifaceted. Inflation has driven up the cost of infrastructure, equipment, and operations for telecom companies, but critics argue that the tariff increases are more about profit maximization than service improvement. Engineer Emeka Nwoke, a telecommunications expert, highlighted the lack of investment in robust infrastructure and the failure to address network congestion. “Consumers are paying a premium for subpar services,” he said, calling for greater transparency from operators regarding network upgrades and maintenance.

Additionally, the dominance of a few major players in the market has stifled competition, leaving consumers with limited options. The NCC, as the regulatory body, has faced criticism for its perceived inability to enforce consumer protection regulations and ensure fair pricing practices. According to Adeolu Ogunbanjo, President of the National Association of Telecom Subscribers, “The service quality has deteriorated to the worst levels since GSM services were introduced in 2001. The government must hold operators accountable.”

Path to Improvement

Addressing the challenges in Nigeria’s telecom sector requires a multifaceted approach:

  • Infrastructure Investment: Significant investment is needed to expand and upgrade telecom infrastructure, particularly in underserved rural areas. This includes building new communication towers, expanding fibre optic networks, and improving mobile network coverage.
  • Regulatory Oversight: The NCC must strengthen its enforcement capabilities to ensure operators meet service quality standards and adhere to fair pricing policies. Harsher penalties for noncompliance and greater transparency in network upgrades are essential.
  • Encouraging Competition: Opening the market to new players can drive innovation, lower prices, and improve service quality. The NCC should create a level playing field for all operators to compete effectively.
  • Consumer Empowerment: Educating consumers about their rights and providing platforms for advocacy can hold telecom operators accountable and push for better services.