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Globacom, a prominent telecommunications operator in Nigeria, has introduced a revised call tariff of 22 kobo per second for calls across all networks, effective immediately. This announcement, recently delivered via SMS to subscribers, marks a notable reduction from typical industry rates while still reflecting an increase from Glo’s previous tariff of 11 kobo per second. The move comes amidst a contentious period in Nigeria’s telecom industry, following the Nigerian Communications Commission’s (NCC) approval of a 50% tariff hike in January 2025, which has drawn sharp criticism from consumers and advocacy groups.
The SMS from Globacom read, “Dear Customer, we have recently revised our call tariff to give you better value. Your calls will now be at 22k/s to all networks.”
Though the new rate of 22 kobo per second (equivalent to N13.20 per minute) doubles Glo’s previous tariff, it remains below the post-hike industry average, positioning the company as a competitive option for cost-conscious Nigerians.
The NCC’s tariff hike approval, announced on January 20, 2025, permitted operators to raise rates by up to 50%. This was to enable them to offset escalating operational costs driven by inflation, pegged at 34.6% in November 2024, foreign exchange volatility, and soaring infrastructure expenses.
The new Globacom tariff regime
The decision lifted the minimum call rate from N6.40 to N9.60 per minute, with the average rising from N11 to N16.50 per minute. SMS costs increased from N4 to N6, and data prices jumped, with the average cost per gigabyte climbing from N350 to N525. Major operators like MTN and Airtel promptly adjusted their tariffs, with MTN’s 25GB data plan rising from N6,500 to N9,750 and Airtel’s 23GB plan increasing from N6,000 to N9,000. Globacom followed suit with its data plans, raising its 24GB package from N5,000 to N7,500, though it delayed revising its call rates until now.
Public reaction to the NCC’s decision has been fiercely negative. The National Association of Telecommunications Subscribers (NATCOMS) condemned the hike as excessive, advocating for a 5-10% increase instead, and threatened legal action. The Nigeria Labour Congress (NLC) launched a boycott of mobile services starting February 13, 2025 and warned of a nationwide telecom shutdown on March 1 if the hike was not reversed.
The House of Representatives also stepped in, instructing the NCC to suspend the increase due to its impact on Nigerians already grappling with economic challenges, including the removal of fuel subsidies. Consumer advocacy group Socio-Economic Rights and Accountability Project (SERAP) labelled the hike “unlawful,” citing violations of citizens’ rights to affordable communication, and vowed to pursue litigation.
Amid this backlash, Globacom’s tariff reduction to 22 kobo per second offers a counterpoint to the industry trend. While it’s a 100% increase from its widely popular 11 kobo per second rate, introduced in 2020 to attract price-sensitive subscribers, it undercuts competitors’ post-hike rates, which range from N18 to N22.50 per minute. A senior Glo official, speaking in February, had hinted at a forthcoming tariff update, and this move appears to balance regulatory compliance with competitive pricing. Industry analysts see it as a strategic play to retain and attract subscribers in a market roiled by rising costs.
Globacom has also emphasized infrastructure improvements to support its pricing strategy. The company recently upgraded its Glo1 submarine cable capacity to enhance network speed and reliability, ensuring “maximum utilisation” for customers.
Additionally, Glo has launched a nationwide initiative to overhaul its power and fiber infrastructure, deploying thousands of new generators, replacing old fiber routes, and laying new ones. These upgrades aim to bolster service delivery, network quality, and coverage, promising subscribers a “unique calling and browsing experience,” according to a company statement.
For small businesses and individual users hit hard by the tariff hikes, Glo’s decision provides some relief. Estimates suggest the 50% increase could raise telecom costs by 10%, slashing profits for small enterprises by up to 7%.
As Nigeria’s telecom sector navigates this turbulent period, Glo’s tariff slash could reshape market dynamics. The NCC, under pressure to reconcile operator sustainability with consumer affordability, faces a delicate balancing act. For now, Globacom’s move offers a glimmer of respite in an increasingly costly landscape, though its long-term impact on customer satisfaction and industry competition remains to be seen.
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