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Nigeria’s competition regulator ties telecoms tariff hike to ‘measurable’ service improvement

Oladapo RiliwanbyOladapo Riliwan
22/01/2025
in News
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The Federal Competition and Consumer Protection Commission (FCCPC) says that telecoms operators must deliver visible and measurable improvements in service quality following the 50% tariff increase approved by government.

The Federal Competition and Consumer Protection Commission (FCCPC) says that telecoms operators must deliver visible and measurable improvements in service quality following the 50% tariff increase approved by government.

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The Federal Competition and Consumer Protection Commission (FCCPC) says that telecoms operators must deliver visible and measurable improvements in service quality following the 50% tariff increase approved by government.

The Nigerian Communications Commission (NCC) on Tuesday said it has approved a 50% tariff increase for telecoms operators citing the need to address the increasing costs of operation.

The FCCPC says that the tariff hike must translate directly into better network reliability, faster internet speeds, improved accessibility, and enhanced customer service.

regulator-ties-telecoms-hike-to-improvements
Tunji Bello, Executive Vice Chairman and Chief Executive Officer (CEO) of the Federal Competition and Consumer Protection Commission (FCCPC),

“It is non-negotiable that telecoms operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment,” the FCCPC states.

“It is non-negotiable that telecoms operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment,” the FCCPC states.

The competion protection agency acknowledges the economic pressures faced by operators, including rising operational costs, but insists that these challenges should not overshadow the need for consumer satisfaction.

FCCPC: telecoms tariff hike linked to service enhancements

The NCC approved the 50% adjustment after rejecting an initial proposal by telecoms operators for a more than 100% increase. The FCCPC commended the NCC for linking the adjustment to service quality improvements and adopting measures to mitigate the impact on consumers.

regulator-ties-telecoms-hike-to-improvements

“The NCC’s approval of a 50% adjustment,” FCCPC says, “which is lower than the over 100% increase initially proposed by operators, demonstrates a thoughtful effort to balance industry sustainability with consumer protection.”

“The NCC’s approval of a 50% adjustment,” FCCPC says, “which is lower than the over 100% increase initially proposed by operators, demonstrates a thoughtful effort to balance industry sustainability with consumer protection.”

Consumer Issues Must Be Addressed

The FCCPC highlights long-standing consumer complaints about network congestion, dropped calls, unusual data depletion, and poor customer service. It reiterates that addressing these issues is critical to justifying the tariff increase.

According to the government agency, “consumers have consistently expressed the desire for measurable improvements in the quality of service before any tariff increases are implemented.”

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Monitoring and Accountability

The commission also called for transparency and accountability in how telecoms operators allocate the additional revenues generated by the tariff hike. It wants operators to invest these funds responsibly in infrastructure development and service delivery improvements, while ensuring clear mechanisms are in place to track progress.

Commitment to Consumer Protection

The Commission assured the public that, together with the NCC, it will continue to pursue measures that uphold these objectives, ensuring consumer interests remain a priority.

“We are committed to closely monitoring the impact of these tariff adjustments to ensure compliance with established regulatory standards,” the FCCPC states.

Addressing Consumer Concerns

The FCCPC says it is working with the NCC to address consumer concerns during the transition and encourages consumers to report issues through official channels.

“Operators are reminded that the FCCPC is actively working with NCC to address concerns that may be raised by consumers during this transition period and beyond,” according to FCCPC. “The Commission encourages consumers to report any unfair practices or concerns through its official channels to ensure effective resolution.”

The Commission also says it is important to ensure that consumers benefit from the tariff increase. “It is imperative that the benefits of a thriving telecommunications ecosystem extend to all stakeholders, particularly consumers.”

Partnership for Accountability

Under a recently signed Memorandum of Understanding (MoU) between the FCCPC and NCC, the two agencies will work together to oversee the implementation of the tariff adjustment. The partnership aims to ensure that the price increase benefits consumers while fostering fairness and transparency within the telecommunications sector, the competition agency says.

“The MoU,” according to the agency, “reinforces the principle that any regulatory or pricing adjustment must balance the sustainability of the industry with the interests of consumers.”

Tags: NCCFCCPCFederal Competition and Consumer Protection CommissionNigerian Communications CommissionTelecommunicationtelecoms
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