NCC Approves 50% Tariff Adjustment for Telecom Operators Amid Rising Costs

NCC Approves 50% Tariff Adjustment for Telecom Operators Amid Rising Costs

The Nigerian Communications Commission (NCC) has approved a 50% tariff adjustment for telecommunications operators, citing increasing operational costs and the need to ensure industry sustainability. The announcement was made in a press statement signed by the Director of Public Affairs, Reuben Muoka, on Monday.

This decision, made under Section 108 of the Nigerian Communications Act, 2003, marks the first significant adjustment to telecom tariffs in over a decade, despite escalating costs in the sector. While some operators had requested over a 100% increase, the NCC opted for a more moderate adjustment, balancing industry demands with consumer affordability.

The new tariffs will adhere to the framework outlined in the NCC’s 2013 Cost Study and the recently issued NCC Guidance on Tariff Simplification, 2024. Requests for tariff adjustments will be reviewed individually to ensure compliance with regulatory standards and to protect consumers from arbitrary charges.

The NCC highlighted that rising operational expenses have strained the telecommunications sector, making the tariff adjustment necessary to close the gap. The move is expected to enable network operators to invest in infrastructure, improve service quality, and enhance coverage, benefiting consumers across Nigeria.

In its statement, the Commission said that 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.

The NCC emphasised that this decision followed extensive consultations with stakeholders from both the public and private sectors. The aim is to maintain a delicate balance between industry sustainability and the financial realities faced by Nigerian households and businesses.

Recognising the potential impact on consumers, the NCC mandated that operators implement the new tariffs transparently and fairly. Telecom providers are also required to educate the public on the revised rates and demonstrate measurable improvements in service delivery as part of the adjustment process.

“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments,” the statement read.

The Commission reassured Nigerians that it remains committed to mitigating the impact of these changes while fostering innovation and inclusivity in the sector.

Meanwhile, National Association of Telecommunications Subscribers (NATCOMS) had previously called for a marginal 10% tariff increase to help telecom operators cope with rising costs.

Similarly, the Association of Telecommunication Companies of Nigeria (ATCON) had urged the Federal Government to approve tariff hikes alongside investments in infrastructure.

While the approved 50% adjustment falls below the Minister’s recommended cap of 60%, it has been welcomed as a step toward stabilising the industry. ATCON advised that the implementation should be carried out promptly to enable Mobile Network Operators (MNOs) to plan effectively for the year.

NCC reaffirmed its commitment to policies that drive connectivity, support indigenous vendors, and promote the growth of Nigeria’s digital economy. As the regulator of the telecommunications sector, it pledged to maintain active engagement with stakeholders to ensure that the industry continues to be a vital driver of the country’s digital transformation.

“This tariff adjustment is seen as a critical measure to address the sector’s challenges while safeguarding consumer interests and ensuring the long-term sustainability of Nigeria’s telecommunications industry.”