In a statement issued on Monday by Reuben Muoka, the Commission’s Director of Public Affairs, the Nigerian Communications Commission (NCC) announced that it has approved a tariff adjustment for telecommunications operators, in line with its powers under Section 108 of the Nigerian Communications Act, 2003 (NCA), which allows the regulator to approve and regulate tariff rates and charges.
NCC clarified that the tariff increase has been capped at 50%, which is below the 100% hike requested by the telecom operators.
The Commission explained that the increase in tariffs was in response to prevailing market conditions.
“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” it stated.
The NCC also noted that these adjustments would remain within the tariff bands specified in the 2013 NCC Cost Study, and each request would be reviewed individually, as is customary during tariff reviews.
“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 regulator highlighted that tariff rates have remained unchanged since 2013, despite the rising operational costs faced by telecom operators.
“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.”
NCC further emphasized that the adjustment will enable telecom operators to invest in infrastructure and innovation, leading to enhanced consumer benefits through improved services.
“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 Commission assured the public that the decision followed extensive consultations with key stakeholders from both the public and private sectors.
“Recognising the concerns of the public, this decision was made after extensive consultations with key stakeholders across the public and private sectors,” NCC stated.
The NCC reaffirmed its commitment to balancing the protection of telecom consumers with the sustainability of the industry.
“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.”
Acknowledging the financial pressures faced by Nigerian households and businesses, the Commission emphasized its empathy towards the impact of tariff adjustments.
“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments.”
In response to these concerns, the Commission mandated telecom operators to implement these changes transparently and in a fair manner, with a requirement to educate the public about the new rates.
“To this end, the Commission has 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.”
NCC also reaffirmed its commitment to a resilient and innovative telecommunications sector.
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