Investors Jubilate as MTN Share Price Surges, Gains N482 Billion After Tariff Hike
- On Tuesday, January 21st, 2025, MTN Nigeria Plc's share price rose by more than N482 billion
- The share price of the telecommunications company increased by N23.3 to settle at 256.3 per shares
- Consequently, the company's capitalization increased from N4.89 trillion the previous day to N5.38 trillion
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The share price of MTN Nigeria Communications Plc has increased significantly to gain over N482 billion.
Source: UGC
According to data from the Nigerian exchange, the telecommunication company’s share price rose by N23.3 to close at N256.3 on Tuesday, January 21st.
Consequently, its company’s capitalization rose from N4.89 trillion the previous day to N5.38 trillion.
The development came as the Nigerian Communications Commission (NCC) approved a 50% hike in phone calls, data, and SMS services, effective immediately.
With the new tariff increase, MTN, GLO, Airtel, and 9mobile are now expected to charge a minimum of N9.6 per minute for calls, up from N6.40, while the maximum permissible call charge will be capped at N50.
Additionally, SMS costs will increase to N6 from N4, and the price of 1GB of data will rise to N525 from N350.
Subscribers kick against increase in call, data tariff
Legit.ng reported that the National Association of Telecoms Subscribers (NATCOMS) says it will sue the Nigerian Communications Commission (NCC) over the 50% tariff hike.
This occured after telecommunications firms' (telcos') request to raise tariffs was granted by the NCC on January 20.
After the Association of Telecommunications Companies of Nigeria (ATCON) and the Association of Licensed Telecommunications Operators of Nigeria (ALTON) expressed a number of issues and requested that the NCC reconsider call pricing upward, the change was made.
Deolu Ogunbanjo, president of NATCOMS, responded to the news by claiming that the NCC did not include subscribers in the agreement
According to Ogunbanjo, NATCOMS had proposed a marginal pricing rise of 5 to 10% since it recognized the predicament the telecom sector was facing. He declared that the authorized 50% tariff increase by the federal government was intolerable.
“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators. It will increase operational costs.” Ogunbanjo said.
According to Ogunbanjo, economic analysts x-rayed the telecom industry and concluded that it was in critical condition, requiring immediate attention.
Charles Abuede, a financial analyst told Legit.ng that the proposed 50% tariff hike in Nigeria’s telecommunications sector is expected to drive significant revenue growth for telecom operators, enabling them to invest in infrastructure, expand network coverage, and improve the quality of their services.
He added,
"This revenue increase will also help operators offset escalating operational costs, particularly those driven by higher energy prices, currency depreciation, and inflation."
Cost of call, data, SMS increases after NCC approval
Legit.ng reported that the Nigerian Communications Commission (NCC) had approved a 50% hike in phone calls, data, and SMS services, effective immediately.
Following approval, consumers can expect changes in how much to pay for calls and data.
With the new tariff increase, MTN, GLO, Airtel, and 9mobile were expected to charge a minimum of N9.6 per minute for calls, up from N6.40, while the maximum permissible call charge will be capped at N50.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
