The Nigerian Communications Commission, has okayed a 50 percent hike in tariff for calls and data, succumbing to pressure from telecom, who have for years pleaded with the commission for an upward review of call rates.
The decision, which was made public on Monday in a statement signed by Reuben Muoka, the Director of Public Affairs, granted a maximum adjustment of 50 percent to current tariffs—much less than the over 100 percent that some operators had suggested.
In addition to stating that it is acting under Section 108 of the Nigerian Communications Act of 2003, the NCC underlined that the new pricing would stay within the parameters specified in its Cost Study from 2013.
The commission claims that to ensure openness and equity in their implementation, the changes will also comply with its 2024 Guidance on Tariff Simplification.
The statement reads, “The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”
It continues, “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.”
“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,” the statement said.
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Tariff hike necessary for infrastructural improvements
According to the NCC, the change was required to maintain investments in innovation and infrastructure, which would benefit customers by enhancing services, expanding coverage, and improving network quality.
“This decision was made after extensive consultations with key stakeholders across the public and private sectors,” Muoka stated, adding that the commission prioritised balancing consumer protection with industry sustainability.
The NCC required operators to apply the new prices openly and inform customers of the changes, acknowledging the financial strains that Nigerian homes and companies are under.
As part of the changes, operators must also show quantifiable improvements in service performance.
“Recognising the concerns of the public, this decision was made after extensive consultations with key stakeholders across the public and private sectors,” it noted.
Between protecting telecom consumers and ensuring telecom sustainability
The NCC has made it a top priority to find a balance between safeguarding telecom customers and making sure the sector remains viable.
It stated, “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,” it emphasised.
NCC’s dedication to building an inclusive and robust telecom industry
The commission reaffirmed its dedication to building an inclusive and robust telecommunications industry.
“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,” the statement added.
To preserve a telecoms environment that safeguards customers and supports the ecosystem that propels connection throughout the country, the NCC promised Nigerians that it would continue to engage with stakeholders.