The Nigerian Communications Commission (NCC) has approved a tariff adjustment for telecommunications operators, with a cap set at 50 per cent on current rates.
The decision followed a careful review of the rising operational costs faced by telecom companies, which have remained unchanged since 2013 despite mounting inflationary pressures.
The approved tariff adjustment is a crucial step in addressing the widening gap between telecom operators’ operational costs and existing tariff rates.
Although some operators initially requested increases exceeding 100 per cent, the NCC has opted for a more measured increase of up to 50 per cent, striking a balance between the needs of the industry and consumer protection.
In a press release signed by the NCC’s director of public affairs, Reuben Muoka, and made available to LEADERSHIP on Monday, the regulator clarified that the revised tariffs would remain within the guidelines of the 2013 NCC Cost Study. Adjustments will be reviewed on a case-by-case basis, as per the NCC’s standard review process. Furthermore, the adjustments will be implemented in compliance with the recently issued NCC Guidance on Tariff Simplification, 2024, ensuring transparency and clarity.
The telecommunications industry has faced several challenges in recent years, including rising fuel prices and currency devaluation, which have compounded the pressure on operators to adjust their tariffs. The tariff increase is seen as a necessary measure to ensure the sustainability of the sector, enabling operators to continue investing in network infrastructure and improving service delivery to consumers.
The NCC emphasised that the changes were aimed at enhancing service quality, improving network coverage, and promoting better customer service. In response to concerns about the impact of higher tariffs on Nigerian households and businesses, the Commission has mandated that operators implement the changes transparently and fairly, with clear communication to the public regarding the new rates and expected improvements in service delivery.
The decision followed extensive consultations with stakeholders across both public and private sectors. The NCC highlighted its commitment to balancing the protection of consumers with the long-term viability of the telecommunications industry.
Recognising the financial pressures faced by Nigerians, NCCn stressed its commitment to supporting indigenous vendors and suppliers who form a critical part of the telecom ecosystem. The NCC also reiterated its ongoing efforts to foster a resilient, innovative, and inclusive telecommunications sector that will drive the growth of Nigeria’s digital economy.
The statement read in part: “The Nigerian Communications Commission (NCC), pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA), will approve tariff adjustment requests by Network Operators in response to prevailing market conditions.
“The adjustment, capped at a maximum of 50 percent of current tariffs, was arrived at after considering ongoing industry reforms that will positively influence sustainability. While some operators requested over 100 percent increases, the approved adjustments are designed to maintain service quality without compromising consumer interests. These adjustments will remain within the tariff bands outlined in the 2013 NCC Cost Study, and each request will be reviewed on a case-by-case basis. The implementation will follow the recently issued NCC Guidance on Tariff Simplification, 2024.
“Given that tariff rates have remained unchanged since 2013, despite rising operational costs, the approved adjustment is intended to bridge the significant gap between costs and tariffs, ensuring continued service delivery to consumers. The Commission remains committed to fostering industry sustainability, encouraging investment in infrastructure, and improving services for consumers, including better network quality, enhanced customer service, and wider coverage.”
The NCC reaffirmed its dedication to creating a balanced, sustainable telecommunications environment that serves the interests of both consumers and operators while supporting the growth of Nigeria’s digital economy.