In a move that’s likely to have a significant impact on consumers, the Nigerian Communications Commission (NCC) has approved a 50 percent increase in tariffs for telecom services.
Reuben Muoka, the NCC’s Director of Public Affairs, announced the decision today, pointing out that the adjustment follows requests from Network Operators and is designed to address prevailing market challenges.
“The Nigerian Communications Commission (NCC), pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators, will be granting approval for tariff adjustment requests by Network Operators in response to prevailing market conditions.”
The tariff increase follows a strong push by Mobile Network Operators (MNOs) and other stakeholders who requested the government to consider inflation rates and approve higher tariffs for data, calls, and SMS messages. MNOs argued that the removal of the fuel subsidy and the devaluation of the naira have significantly raised operational costs within the industry, among other challenges.
The NCC explained that the approval was granted with the provision that:
The adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.
Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.
These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.
Recognising the concerns of the public, this decision was made after extensive consultations with key stakeholders across the public and private sectors.
The NCC has prioritised striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.
The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. To this end, the Commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers. Operators are also required to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery.
Read the full statement by the NCC below
PRESS RELEASE:
NCC Approves Request for Tariff Adjustments by Operators pic.twitter.com/HwT5mqc2ww
— ncc.gov.ng (@NgComCommission) January 20, 2025
Feature Image by Ono Kosuki for Pexels
