The Nigerian Communications Commission (NCC) has approved a 50% tariff adjustment for telecom operators, citing rising operational costs and the need to sustain the industry.
Announced in a press statement signed by the Director of Public Affairs, Reuben Muoka, on Monday, this decision underlines the Commission’s regulatory role under Section 108 of the Nigerian Communications Act, 2003.
The approved adjustment, significantly lower than the over 100 per cent requested by some operators, follows careful consideration of market conditions and ongoing industry reforms aimed at fostering sustainability.
The adjustments will adhere to the tariff bands established in the 2013 NCC Cost Study and will be reviewed on a case-by-case basis, guided by the recently issued NCC Guidance on Tariff Simplification, 2024.
According to the statement, “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 adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.
“These 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.”
Balancing industry needs with consumer protection
For over a decade, telecom tariffs have remained static despite surging operational costs. The NCC explained that this adjustment is necessary to close the widening gap between rising operational expenses and the rates charged for services. The move is expected to enable operators to invest in infrastructure and innovation, improving network quality, customer service, and coverage for consumers.
The Commission emphasised that this decision follows extensive consultations with stakeholders across the public and private sectors. The objective is to strike a balance between supporting the sustainability of the telecommunications industry and addressing the financial pressures on Nigerian households and businesses.
Transparency and consumer awareness
Recognising the potential impact on consumers, the NCC has mandated that operators implement the new tariffs transparently and fairly. Telecom providers are required to educate the public on the revised rates and demonstrate measurable improvements in service delivery as part of the adjustment process.
The Commission assured that it remains empathetic to the financial challenges faced by Nigerians and is committed to mitigating the impact of these changes.
Continued stakeholder engagement
As the regulator of Nigeria’s telecommunications sector, the NCC pledged to maintain active engagement with stakeholders to create a conducive environment for operators, consumers, and the ecosystem at large. The Commission reaffirmed its dedication to policies that drive connectivity, innovation, and inclusivity.
This tariff adjustment marks a significant step in addressing the challenges of the sector while safeguarding consumer interests, ensuring that the telecommunications industry remains a vital driver of Nigeria’s digital transformation.
The statement concluded, “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.
“Additionally, the NCC reaffirms its dedication to fostering a resilient, innovative, and inclusive telecommunications sector. Beyond protecting consumers, the Commission’s actions are designed to ensure the long-term sustainability of the industry, support indigenous vendors and suppliers, and promote the overall growth of Nigeria’s digital economy.
“As a regulator, the NCC will continue to engage with stakeholders to create a telecommunications environment that works for everyone—one that protects consumers, supports operators, and sustains the ecosystem that drives connectivity across the nation.”
What you should know
- The National Association of Telecommunications Subscribers (NATCOMS) last year called on the Nigerian Communications Commission (NCC) to approve a marginal 10% tariff increase for telecom companies to alleviate the rising operational costs in the sector.
- However, the Minister had said that the tariff increment to be approved by the NCC should not be more than 60%.
- The Association of Telecommunication Companies of Nigeria (ATCON) commended the Federal Government’s decision to hike call and data tariffs, as well as invest in the sector’s infrastructure.
- It advised the tariff hike should be implemented in the first quarter of the year so that the Mobile Network Operators (MNOs) can start planning.
