The Nigerian Communications Commission (NCC) has approved a tariff increase for telecommunications companies due to prevailing market conditions.
Reuben Mouka, the commission’s spokesperson, announced the decision in a statement on Monday, citing the regulatory powers granted under Section 108 of the Nigerian Communications Act, 2003.
Mouka explained that the adjustment permits a maximum 50 percent increase on current tariffs, down from the over 100 percent hike initially requested by some network operators.
“The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” Mouka stated.
The statement continued, “These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, with requests being reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. The implementation will follow the recently issued NCC Guidance on Tariff Simplification, 2024.”
Mouka noted that tariff rates have remained unchanged since 2013, despite rising operational costs for telecom operators.
“The approved adjustment aims to close the gap between operational costs and current tariffs while ensuring that services to consumers are not compromised.”
“These adjustments will support operators’ ability to invest in infrastructure and innovation, ultimately benefiting consumers with improved services and connectivity, including better network quality, enhanced customer service, and greater coverage,” he added.
He further explained, “This decision follows extensive consultations with key stakeholders from both the public and private sectors.”
“The NCC sought to strike a balance between protecting telecom consumers and ensuring the sustainability of the industry, including the thousands of local vendors and suppliers that play a vital role in the telecommunications ecosystem.”
“The NCC acknowledges the financial pressures faced by Nigerian households and businesses and understands the impact of tariff adjustments. The Commission has mandated that operators implement these changes transparently and in a way that is fair to consumers.”
Mouka also emphasized that operators are required to inform the public about the new rates and demonstrate measurable improvements in service delivery.