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NCC Explains 50% Tariff Hike For Telcos Operators

Amid concerns about the sustainability of Nigeria’s telecoms sector due to ongoing economic challenges prompting calls by several operators for appropriate tariff adjustments, the Nigerian Communications Commission NCC has given reasons for approving a tariff hike of a maximum of 50 per cent for Network Operators.

Nigeria’s telecommunications industry has been awash with news about imminent tariff increase calls by operators due to the economic challenges in the country. This current situation has seen stakeholders conflicted on balancing affordability and sustainability.

This approval according to NCC is in response to current economic realities, which it says is lower than the 100 per cent hike requested by the operators.

Bosun Tijani, minister of Communications, Innovation and Digital Economy, had last week hinted that the Federal Government was planning to approve the request by the network operators for a tariff adjustment across all mobile services in the country.

In a statement by Reuben Muoka, director, of Public Affairs of the NCC, the approval for the tariff adjustment is in line with powers granted by the Commission under section 108 of the Nigerian Communications Act NCA, 2003 to regulate and approve tariff rates and charges by telecommunications operators.

Muoka disclosed that the hike, which has been capped at a maximum of 50 per cent of current tariffs, which is however lower than the over 100 per cent requested by some network operators, was in response to the prevailing market conditions and was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

He further noted that tariff rates in the country have remained in one position since 2013, a development that makes the current adjustment necessary given prevailing economic conditions and to enhance the sustainability of quality service delivery.

The statement reads in part: “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.

“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment addresses 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.

“Recognising the public’s concerns, this decision was made after extensive consultations with key stakeholders across the public and private sectors. “The NCC has prioritised striking a balance between protecting telecom consumers and ensuring the industry’s sustainability, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.

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

The Commission therefore reaffirmed its dedication to fostering a resilient, innovative, and inclusive telecommunications sector, adding that beyond protecting consumers, the NCC’s actions are designed to ensure the long-term sustainability of the industry, support indigenous vendors and suppliers, and promote the overall growth of Nigeria’s digital economy. It further assured that as a regulator, the Commission will continue to engage with stakeholders to create a telecommunications environment that works for everyone one that protects consumers, supports operators, and sustains the ecosystem that drives connectivity across the country.

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