A signage of Airtel Ltd.
Olawale Omotosho, a Nigerian banker in his early 30s, is “a little unhappy” with his mobile network provider, MTN, for changing the prices of their internet data plans. Omotosho’s preferred 75GB bundle has been upwardly reviewed from N15,000 ($9.95) to N20,000 ($13). “I’m not too angry about it because, ultimately, I can still afford it, but Nigerians are already going through a lot with our economy, so this data situation will squeeze many people,” Omotosho tells OkayAfrica.
In January, the Nigerian Communications Commission (NCC) announced its approval of a 50 percent tariff adjustment for telecom operators in the country, citing rising operational costs and the weakened financial viability of the sector under the current economic realities. The Nigerian governmentsupported this adjustment, saying that “operators are free to maintain their current rates if they find them sustainable.”
However, two mobile network operators – MTN and Airtel – have confirmed price increases to their data plans. MTN was the first to enact change, coming under fire for a 200 percent increase to its 12GB weekly data plan. Formerly N2,000 ($1.3), the increase to N6,000 ($4) met with instant public backlash. The reactions prompted MTN to reverse the increase and put out a statement admitting the increase “was a mistake,” however, social media users said the statement was tone-deaf and vacuous.
MTN Nigeria posts an apology via its X account
Photo Credit: MTN Nigeria via X
An insider who works with MTN’s PR and Communications team anonymously told OkayAfrica that the telecom giant mainly increased its data prices to stop the bleeding, adding that the widely panned statement was primarily a way of appeasing customers. Last year, MTNlost nearly N515 billion (about $342 million) in the first nine months, mainly attributed to the devaluation of the naira.
“To be fair, it’s been common knowledge that these telcos have wanted to increase tariffs for a while and were just waiting for the NCC,” Omotosho says. While unsurprising, the reality of these increases in internet data plans is set to be biting in a country in the middle of an endemic economic crisis.
With aninternet penetration rate of about 55 percent and over 84 percent of internet traffic generated by mobile devices, these increases could slow the growth of internet users in Nigeria. It could also affect the internet habits of Nigerians, especially the youth population.
“People will be forced to choose what they want to use their data for because it’s now more expensive and more precious,” Henry Othuke, a Master’s student at the University of Lagos, says. “It will affect music and movie streaming, which might worsen piracy. Maybe more people would reduce their time on one social media platform and focus on the one they like best. It’s all speculation now, but there will be noticeable effects for sure.”
Airtel recently restructured its data plans, increasing prices and replacing several existing packages. The changes included discontinuing the 6GB plan priced at N2,500 ($1.66) in favor of a new 10GB plan at N4,000 ($2.65). These price adjustments go beyond data plans - Airtel has modified its call rates, and according to Nairametrics, all four major mobile providers (MTN, Airtel, Glo, and 9mobile) have increased text messaging rates by 50 percent. “It’s just the latest bout of inflation,” Omotosho says. “There’s no rest for us in Nigeria.”
