The recent 50% tariff hike implemented by telecom operators in Nigeria has led to a slow activation of new telephone lines. According to data from the Nigerian Communications Commission (NCC), the number of active lines has stagnated, with only a marginal increase from 170.8 million in February to 172.6 million in May.
The tariff hike, which took effect in January 2025, raised the floor price for calls from N6.40 to N9.60 per minute, SMS from N4 to N6, and 1GB of data from N287.50 to N431.25. While the hike was intended to boost revenue for telecom operators, it appears to have had a negative impact on subscriber growth.
Analysis of the NCC data reveals that the number of active lines increased by only 239,899 between March and April, but dropped by 276,375 by May. This is in contrast to the last quarter of 2024, when operators activated 7.3 million new telephone lines. The country’s tele-density has also hovered around 79% in the last three months, indicating a slow growth in subscriber numbers.
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Further analysis shows that internet users’ subscriptions have remained stagnant, especially via narrowband. The number of internet users dropped from 141.5 million in March to 141 million in May. However, data usage has increased, with broadband users rising by 2.34 million between March and May. Broadband penetration stood at 48.81% in May, which is about 21.19% away from the 70% target set by the National Broadband Plan.
Despite the slow activation of new telephone lines, data usage has risen to 1,043,431.98TB by the end of May. This increase is largely attributed to the growing adoption of broadband services, particularly Fibre to the Home (FTTH) and Fibre to the Room (FTTR) initiatives by operators.
In a bid to improve the quality of service, the NCC has directed telecom operators and tower companies to enhance their services by August, failure of which could result in huge penalties. The regulator has been petitioned by aggrieved subscribers on the drop in quality of service, and industry sources indicate that the NCC is taking steps to address these concerns.
