The Nigerian Communications Commission (NCC) has approved a 50% tariff increase for telecoms operators citing the need to address the increasing costs of operation.
The decision follows extensive consultations with stakeholders and aims to ensure the sustainability of the telecommunications industry while safeguarding consumer interests, NCC says in a statement made available to Technology Times today and signed by Reuben Muoka, Public Affairs Director at the telecoms regulatory agency.
The telecoms industry regulator says that telecoms tariffs in Nigeria have remained unchanged since 2013, despite a sharp rise in operational costs. The Commission notes that the approved adjustments are necessary to close this gap. “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 states.
This adjustment, NCC says, aligns with the directive from the Minister of Communications and Digital Economy, which capped any tariff increment approved by the NCC at a maximum of 60%.
According to the NCC, the adjustment is significantly lower than the over 100% increase requested by some operators. “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.”
NCC: Tariff increase to addressing rising operational costs
The telecoms industry regulator says that telecoms tariffs in Nigeria have remained unchanged since 2013, despite a sharp rise in operational costs. The Commission notes that the approved adjustments are necessary to close this gap. “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 states.
The NCC explained that the adjustments will remain within the tariff bands established in its 2013 Cost Study and will be implemented in line with the 2024 Guidance on Tariff Simplification. Requests from operators will be reviewed individually as part of the NCC’s standard practice, the regulator says.
NCC on benefits for consumers and telcos
Highlighting the expected benefits of the adjustment, the NCC states: “These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.”
The Commission also acknowledges the financial pressures faced by Nigerian households and businesses, emphasising its commitment to fairness. “Operators,” NCC says, “are required to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery.”
Balancing stakeholder interests
The NCC emphasises that its decision balances the interests of all stakeholders, including consumers and indigenous vendors who are integral to the telecoms ecosystem. “The NCC has prioritised striking a balance between protecting telecoms 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.”
As part of its regulatory approach, the NCC reaffirms its dedication to fostering a resilient, innovative, and inclusive telecommunications sector. “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.”
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