The Nigerian Communications Commission (NCC) has approved requests from Mobile Network Operators (MNOs) for 50 per cent tariff adjustments in response to prevailing operational costs.
This is contained in a statement in Abuja on Monday by NCC Director, Public Affairs, Dr Reuben Muoka.
Muoka said the NCC decision was in 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.
Muoka said the adjustment, capped at a maximum of 50 per cent of current tariffs, was arrived at taking into account of the ongoing industry reforms that would positively influence sustainability.
He said though it was lower than over 100 per cent requested by some network operators.
“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 it 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.”
He said that these adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity.
He added that consumers would benefit better network quality, enhanced customer service, and greater coverage within the country.
He said while recognising the concerns of the public, the 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,” NCC public affairs director said.
According to him, 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 will protect consumers, support operators, and sustain the ecosystem that drives connectivity across the nation.”
In its reaction, the National Association of Telecommunications Subscribers (NATCOMS) said it would challenge the Federal Government’s decision to allow telecoms operators increase tariff by 50 per cent in a court of law.
The President, NATCOMS, Mr Deolu Ogunbanjo, said Nigerian Communications Commission (NCC) did not carry it along in the arrangement.
Ogunbanjo said that NATCOMS understood the dilemma faced by the telecommunications industry and had suggested a five per cent to ten per cent marginal increase in tariff.
He said that the approval by the federal government for telecoms operators to hike tariffs but capped at 50 per cent maximal increment was unacceptable.
“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,” he said.
According to Ogunbanjo, earlier, economic experts had x-rayed the telecoms sector and said that it was in intensive care, meaning that it needed to be attended to.
“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it.
“So, that is why we painfully agreed that, look, a moderate or marginal five per cent to 10 per cent increase will be fine.
”You know, we do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s Gross Domestic Product.
“So, we appreciate that. It’s painful, but we granted. We said, okay, we will not mind if it is just five per cent to 10 per cent increase,’’ he said.
