TUE JAN 21 2025-theGBJournal|The Nigerian Communications Commission (NCC), Nigeria’s telco industry regulator, said late Monday that it will be granting approval for tariff adjustment requests by Network Operators ”in response to prevailing market conditions.”
The regulator said the increase was 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.
In a statement released by its Director, Public Affairs, Reuben Muoka, the Commission outlined the key issues that drove its decision to raise tariffs for the operators who earlier were insisting on a 100% hike in tariff.
The Commission said; ”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.”
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 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.”
The NCC also noted that Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators, and argued that 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.
”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 suggestion of a tariff hike met stiff backlash and restrained the NCC from acting on the matter when the operators first presented their proposal in 2024. requesting for a 100% adjustment in tariff.
The NCC said it acknowledged consumers’ concerns, financial pressures faced by Nigerian households and businesses, as it made the tariff adjustment decision after extensive consultations with key stakeholders across the public and private sectors.
It adds that it has prioritized 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 Commission 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.
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