MTN Nigeria’s recently implemented 50% tariff adjustment has drawn criticism from subscribers who noticed that some internet plans experienced price hikes far beyond the 50% threshold approved by the Nigerian Communications Commission (NCC). However, a data pricing document reviewed by TechCabal reveals that only four out of 18 internet plans were affected by the full 50% adjustment or higher.
While most plans saw moderate increases, a few experienced significant price adjustments, prompting users to raise concerns about fairness and affordability.
Key Adjustments to Internet Plans
- Hourly and Three-Month Plans:
- The 2GB hourly bundle, previously priced at ₦200, was replaced with a 400MB hourly plan for ₦100, representing an effective price increase of 156%.
- The 400GB three-month plan, originally priced at ₦50,000, was adjusted to 480GB for ₦120,000, reflecting a 100% increase.
- Digital Channels-Only Plans:
- The 2.5GB digital-only bundle, which targets digital-first businesses, increased by 50%, rising from ₦500 to ₦750.
- The 15GB digital-only bundle, previously priced at ₦2,000, was replaced with a 15GB PGW Weekly bundle priced at ₦6,000, representing a 200% increase.
MTN’s Explanation
In response to the backlash, an MTN Nigeria spokesperson explained that some bundles with more than a 100% increase were heavily discounted promotional offers. Once the promotional period ended, MTN adjusted the pricing to align with standard market rates, applying the 50% tariff increase on top of the recalibrated prices.
“What we have done now is to price the bundle properly since the period for the discounted price ended a long time ago. We then added the 50% tariff increase on the standard market price,” the spokesperson said.
Additionally, MTN Nigeria reduced the price of internet calls by 14 kobo instead of the 24 kobo per second rate suggested by the market, softening the impact for users.
Breakdown of Price Adjustments
Of the 18 internet plans reviewed:
- 13 plans received less than a 40% increase, with most adjustments falling below the NCC’s approved 50% threshold.
- The 25GB monthly plan, one of the most popular, saw its price rise from ₦6,500 to ₦9,000, representing the largest increase within the sub-50% group.
Subscriber Reaction and Industry Implications
Many subscribers expressed frustration over the sharp increase in some plans, particularly for plans initially marketed as affordable. For small businesses and digital-only operations, the higher prices could impact cost structures and reduce internet accessibility for some users.
While MTN Nigeria’s explanation provides context, the pricing adjustments highlight the balancing act between ensuring network sustainability amid rising operational costs and maintaining affordability for consumers. The move also reflects the broader challenge facing Nigerian telecom operators, who continue to grapple with inflation, foreign exchange volatility, and rising infrastructure costs.