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Nigeria’s Telecom Price Controls Spark Debate on Liberalization and Investment

Telecom

Business Honor
10 March, 2025

Analysts push for market-driven telecom pricing to sustain growth and competition.

As industry analysts argue that complete liberalization is required to maintain network quality and investment, Nigeria's telecom pricing laws are coming under further opposition. Telecom rates haven't moved much in over ten years due to inflation of over 300 percent, which has forced operators to absorb growing costs while fighting to keep up infrastructure and service quality.

Analysts caution that price-related governmental meddling has hindered competition, deterred foreign investment, and put service providers under unmanageable strain. Ejike Onyeaso, an executive with Adaba Consult, told The PUNCH that the stability required for sustained industry growth will come from a market-driven pricing structure in which tariffs are set by supply and demand rather than by government interference.

When the Nigerian Communications Commission authorized a 50% tariff increase in January 2025 to alleviate the financial burden on operators, the discussion surrounding pricing regulation reached a climax. The Nigeria Labour Congress immediately protested the decision, calling for a telecom boycott and protests, claiming that customers would be burdened by rising tariffs. The issue dragged on for more than two months as a result of weeks of intense discussions involving government officials, labor groups, and industry partners.

Simon Kolawole, the publisher of The Cable, questioned why telecom prices are still strictly regulated whereas those of other industries, like gasoline, have been deregulated. The regulator does not have the authority to set floor or ceiling tariffs in a market that is fully deregulated.

In a column last week, Kolawole stated that the Federal Competition and Consumer Protection Commission should stop unfair pricing practices like collusion, while the NCC should concentrate on upholding technical standards and guaranteeing high-quality service. In order to ensure gradual adjustments rather than sudden rises that spark public outrage, he proposed indexing telecom pricing against economic indicators like inflation in place of outright price controls.