By Chinenye Anuforo
The Nigerian Communications Commission (NCC) has approved a limited increase in telecommunication tariffs for network operators.
The decision, made after extensive consultations with stakeholders, aims to address the rising operational costs faced by operators while ensuring consumer protection.
The approved tariff adjustments, capped at a maximum of 50%, are lower than the increases initially requested by some operators.
The move considers ongoing industry reforms that are expected to improve the sector’s sustainability.
“Tariff rates have remained static since 2013,” stated the NCC in a press release. “This adjustment aims to bridge the gap between operational costs and current tariffs, allowing operators to continue investing in infrastructure and innovation.”
“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”, the statement read.
Recognising the concerns of the public, 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 sustainability of the industry, 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.”
Additionally, the NCC reaffirmed its dedication to fostering a resilient, innovative, and inclusive telecommunications sector. Beyond protecting consumers, the Commission’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.
As a regulator, “the NCC 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 nation”, the NCC stated.
The Nigerian telecommunications sector has been facing a severe crisis, fueled by a perfect storm of economic headwinds.
The Naira’s depreciation and rampant inflation have driven up operational costs, squeezing profit margins for major players like MTN Nigeria and Airtel. This financial strain is evident in MTN Nigeria’s staggering N514.93 billion loss reported for the nine months ending September 2024, primarily attributed to foreign exchange losses.
Despite this dire situation, telecom operators have been hamstrung by a decade-long regulatory freeze on tariff adjustments. The NCC mandates prior approval for any price changes, a measure aimed at safeguarding consumers from exorbitant increases.
However, this regulatory cap has become a major obstacle for operators struggling to cope with escalating expenses. Operators argued that the inability to adjust tariffs threatens the sector’s viability and discourages much-needed investments.
“Allowing operators to increase tariffs is seen as a necessary step to ensure the sector’s survival. Telecom services are critical for communication, education, and business in Nigeria, and a thriving sector is vital for the country’s development”, a telecom expert had told Daily Sun.
However, this move comes with significant concerns. A rise in tariffs will undoubtedly impact the cost of living for many Nigerians, potentially making essential telecom services less accessible to a large segment of the population.