The Nigerian Communications Commission, NCC, on Monday, approved a 50 per cent tariff adjustment for telecommunications operators in response to increasing operational costs and prevailing market conditions.
A statement by the NCC’s Director of Public Affairs, Reuben Muoka, said the decision was made under the NCC’s regulatory powers as stipulated in Section 108 of the Nigerian Communications Act, 2003.
The approved adjustment falls significantly below the over 100 per cent increase initially requested by some network operators.
The statement read, “The Nigerian Communications Commission, pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 to regulate and approve tariff rates and charges by telecommunications operators, will be granting approval for tariff adjustment requests by Network Operators 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.
“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.”
According to the commission, tariff rates have remained static since 2013, despite inflation and rising operational costs that have strained the telecommunications industry.
The NCC assured that the adjustments would be implemented transparently, with operators mandated to educate consumers about the new rates and ensure measurable improvements in service delivery.
However, with an approved 50 per cent increase, the average cost of phone calls will likely rise from N11 to N16.5 per minute, SMS charges will increase from N4 to N6, and the cost of 1GB of data will jump from N350 to N525.
Telecom operators have been clamouring for tariff hikes, citing escalating operating costs due to inflation, naira devaluation, and an unstable economic environment.
Consumer Rights Group React
Meanwhile, some consumers rights groups have reacted to the development.
Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers, in a chat with newsmen on Monday, rejected the imposition of a new duty on the telecom sector, warning that it would worsen the taxation burden and negatively impact Nigerians.
“There was no agreement reached at the meeting with stakeholders,” Ogunbanjo said. “We presented our case, but nothing concrete was resolved during the meeting with the NCC in Abuja.”
The association has vowed to take legal action if the proposed duty is implemented without addressing subscribers’ concerns.
Ogunbanjo noted that while the association might accept a tariff increase of 5 to 10 per cent, anything beyond that would be unacceptable.
“If this new duty is implemented, we will take the matter to court. This kind of policy cannot stand,” he declared.
He suggested alternative funding mechanisms for telecom operators, such as raising capital through Initial Public Offerings.
“Let Nigerians be part of the business by buying shares. MTN has already gone public, and others can follow. This way, operators can raise funds without overburdening subscribers,” he said.
Ogunbanjo also highlighted the critical role the telecom sector plays in Nigeria’s economy, noting its contribution to foreign direct investment and GDP growth.
“Apart from oil, telecommunications is the only sector attracting significant investment. We cannot allow policies that will collapse the industry,” he stated.
He appealed to the minister to reconsider policies that could further impoverish Nigerians, citing poor electricity and economic conditions as ongoing challenges.
“A 50 per cent increase will cripple Nigerians. We will not accept this. A moderate increase is enough, and operators should explore other ways to generate funds,” Ogunbanjo insisted.
The Association of Telephone, Cable TV, and Internet Subscribers of Nigeria noted stated that with such an increase in tariff, there is a need for significant improvements in service quality.
President of the consumer group, Sina Bilesanmi stated that the new tariff is to be implemented in February and warned that service providers must enhance their infrastructure and service quality within two weeks of the rollout.
“If we don’t see tangible improvements, we will take legal action against the telcos, the NCC, and the Federal Government,” he said.