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2025-01-16
In an era dominated by instant messaging apps and social media platforms, traditional text messaging (SMS) remains a significant communication tool in Nigeria. However, the reliance on SMS comes at a hefty cost. In 2023, Nigerian telecom subscribers spent a staggering N44.7 billion on sending text messages, despite widespread issues with undelivered messages and rising frustrations over service quality. This article delves into the latest data on SMS usage, the financial burden on subscribers, and the broader implications of proposed tariff hikes on data, calls, and SMS.
The State of SMS Usage in Nigeria
According to the 2023 Subscriber/Network Performance Report, Nigerian telecom networks processed a total of 22.97 billion text messages last year. Of these, 11.18 billion were sent, and 11.80 billion were received. While this figure represents an 11.38% decline compared to the 25.9 billion SMS exchanged in 2022, the cost burden on subscribers remains substantial. At N4 per SMS, Nigerians spent N44.7 billion on sending messages alone.
MTN, Nigeria’s largest telecom operator, dominated the SMS market, handling 16.9 billion messages—8.2 billion sent and 8.5 billion received. Globacom followed with 1.35 billion messages, while Airtel processed 4.4 billion SMS. 9mobile and Smile Communications recorded 458.1 million and 1.2 million messages, respectively.
Interestingly, the volume of sent SMS increased by 20.66% compared to 2022, while received messages saw a marginal 0.35% rise. This discrepancy highlights the growing reliance on SMS for communication, even as delivery issues persist.
International SMS Traffic
International SMS also saw significant activity in 2023, with 75.4 million messages sent and 264.3 million received, totaling 339.7 million messages. MTN led in outgoing international SMS with 34.5 million, while Airtel dominated incoming messages with 275.1 million.
The Debt Crisis in Telecom-Banking Relations
Amid these developments, the Nigerian Communications Commission (NCC) has intervened in a long-standing debt dispute between telecom operators and banks. Nine banks face the deactivation of their USSD codes due to unpaid debts totaling over N200 billion. The NCC has set a deadline of January 27, 2025, for these banks to settle their dues or risk losing access to these critical codes, which are essential for mobile banking services.
Proposed Tariff Hikes and Their Implications
The rising cost of telecom services, including SMS, calls, and data, has sparked concerns among subscribers. With proposed tariff hikes on the horizon, Nigerians may face even higher communication expenses. This raises questions about the affordability and accessibility of essential telecom services in a country where digital connectivity is increasingly vital for economic and social participation.
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What Undercode Say:
The data on SMS usage in Nigeria reveals a complex interplay between consumer behavior, telecom infrastructure, and regulatory challenges. While the decline in SMS volume suggests a gradual shift toward alternative communication platforms, the significant expenditure on text messages underscores their continued relevance, particularly in areas with limited internet access.
However, the issue of undelivered messages and the associated costs highlight systemic inefficiencies in Nigeria’s telecom sector. Subscribers are paying for a service that often fails to meet expectations, raising concerns about transparency and accountability among mobile network operators (MNOs).
The proposed tariff hikes further complicate the situation. While MNOs argue that higher tariffs are necessary to sustain network infrastructure and improve service quality, critics warn that such increases could exacerbate the digital divide, disproportionately affecting low-income users who rely on affordable communication options.
The debt crisis between telecom operators and banks adds another layer of complexity. USSD codes are a lifeline for millions of Nigerians who depend on mobile banking for financial transactions. The potential deactivation of these codes could disrupt access to essential financial services, particularly in rural and underserved areas.
From a broader perspective, the challenges facing Nigeria’s telecom sector reflect deeper structural issues, including regulatory bottlenecks, infrastructure deficits, and the need for greater investment in digital technologies. Addressing these challenges will require a collaborative approach involving regulators, operators, and other stakeholders.
In conclusion, while SMS remains a vital communication tool in Nigeria, the sector’s inefficiencies and rising costs call for urgent reforms. Policymakers must strike a balance between ensuring the sustainability of telecom services and protecting the interests of consumers. As Nigeria continues its digital transformation journey, the telecom sector’s ability to deliver reliable, affordable, and inclusive services will be critical to achieving broader socio-economic goals.
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This analysis underscores the importance of addressing the systemic issues plaguing Nigeria’s telecom sector. By fostering innovation, improving infrastructure, and enhancing regulatory oversight, stakeholders can create a more resilient and consumer-friendly telecom ecosystem.
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