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Summary
The Nigerian Communications Commission (NCC) has approved a 50% tariff hike for telecom operators, citing the need to address rising operational costs and sustain the industry. While lower than the 100% increase sought by some operators, the adjustment aims to bridge the gap between costs and tariffs, ensuring improved consumer services.
The Nigerian Communications Commission (NCC) has approved a 50% tariff hike for telecommunications operators, citing the need to address rising operational costs and sustain the industry. The new adjustment, announced in a statement issued on Monday, Jan. 20, 2025, by the Commission’s Director of Public Affairs, Reuben Muoka, is significantly lower than the 100% increase requested by some operators.
The NCC stated that the decision was made under the powers conferred by Section 108 of the Nigerian Communications Act, 2003, which authorises the regulator to approve and regulate telecom tariffs.
“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,” the statement read.
The Commission clarified that the revised tariffs would remain within the bounds specified in its 2013 Cost Study and would be reviewed case-by-case in line with its 2024 Guidance on Tariff Simplification.
“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 NCC explained.
The regulatory body emphasised that the adjustment is crucial to enabling telecom operators to invest in infrastructure and innovation, ultimately benefiting consumers through improved service delivery.
The NCC also assured the public that the decision followed extensive consultations with public and private stakeholders.
“Recognising the public’s concerns, this decision was made after extensive consultations with key stakeholders across the public and private sectors,” the Commission said.
Additionally, the NCC reaffirmed its commitment to balancing safeguarding consumer interests and ensuring the telecommunications industry remains viable.
“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 statement concluded.
