NCC approves 50% tariff hike for telecoms

 NCC Approves Tariff Adjustments for Telecom Operators Amid Rising Costs

The Nigerian Communications Commission (NCC) has granted approval for tariff adjustments requested by telecom operators due to increasing operational expenses. This marks the first tariff revision since 2013.

The decision, detailed in a statement by NCC’s Director of Public Affairs, Reuben Muoka, on Monday, permits a maximum adjustment of 50%, significantly lower than the over 100% increase proposed by some operators.

The NCC cited its authority under Section 108 of the Nigerian Communications Act, 2003, emphasizing that the revised tariffs would remain within the cost structure established in its 2013 Cost Study. Additionally, the adjustments will comply with the 2024 Guidance on Tariff Simplification, ensuring transparency and fairness.

Key Details of the Adjustment

The NCC explained that the increase aims to bridge the gap between rising operational costs and stagnant tariffs, while ensuring continued service quality and network expansion.

• The adjustment is capped at 50% of current tariffs, despite operators requesting over 100% increases.

• The changes align with the 2013 NCC Cost Study and will be reviewed on a case-by-case basis as part of the NCC’s tariff regulation process.

• The implementation will strictly follow the NCC’s 2024 Tariff Simplification Guidance to ensure fair pricing.

The commission highlighted that telecom service rates have remained unchanged for over a decade, despite significant increases in operational costs.

Protecting Consumers While Sustaining Industry Growth

The NCC noted that sustaining investment in telecom infrastructure and innovation is essential for enhancing service delivery, network coverage, and quality. The decision follows extensive consultations with stakeholders in both the public and private sectors.

“While we acknowledge the financial challenges faced by Nigerian households and businesses, we remain committed to ensuring that these adjustments are implemented transparently and fairly,” the statement read.

To balance consumer interests with industry sustainability, the NCC has directed operators to:

• Implement the new tariffs transparently, ensuring consumers understand the changes.

• Improve service quality to justify the tariff adjustments.

• Educate subscribers about the revised rates and their implications.

Commitment to a Resilient Telecom Sector

The commission reaffirmed its commitment to fostering a robust telecommunications industry that supports indigenous vendors and suppliers, ultimately contributing to Nigeria’s digital economy.

“The NCC remains dedicated to protecting consumers while ensuring that the telecommunications sector continues to thrive. We will maintain ongoing engagements with stakeholders to achieve a balance between affordability and industry sustainability,” the statement concluded.