The Nigerian Communications Commission (NCC) has approved a tariff increase for telecommunications companies (telcos) in the country, following a request for an adjustment to current rates. The approval was announced in a statement on Monday by Reuben Muoka, the NCC’s Director of Public Affairs.
According to the NCC, the decision was made in line with the Commission’s authority under Section 108 of the Nigerian Communications Act, 2003, which grants it the power to regulate and approve tariffs for telecom operators. The adjustment will be capped at 50 percent of current tariffs, lower than the 100 percent increase that some telecom companies had requested.
The NCC explained that the tariff hike was prompted by prevailing market conditions, as the costs of operation for telecom operators have increased significantly over the years. Despite the rising operational expenses, the last tariff review was conducted in 2013, leaving a substantial gap between the operators’ operational costs and the existing tariff rates.
In its statement, the Commission emphasized that the approved tariff adjustment will help close this gap while ensuring that the quality of service to consumers is not compromised. It also mentioned that the adjustment is in line with ongoing industry reforms that aim to improve sustainability in the telecommunications sector.
“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,” the NCC noted. The adjustments will also adhere to the recently issued NCC Guidance on Tariff Simplification for 2024.
While acknowledging the public’s concerns regarding the tariff increase, the NCC assured that extensive consultations with key stakeholders from both the public and private sectors were conducted before making the decision. The Commission highlighted that the adjustment is necessary for ensuring telcos can continue to invest in infrastructure and innovation, ultimately benefiting consumers with better network quality, customer service, and greater coverage.
The NCC also emphasized its commitment to protecting consumers while ensuring the sustainability of the telecommunications industry. In response to the financial pressures faced by Nigerian households and businesses, the Commission mandated that operators implement the tariff increase transparently and in a manner that is fair to consumers. Operators are required to inform the public about the new rates and demonstrate measurable improvements in service delivery.
The Commission reiterated its focus on fostering a resilient, innovative, and inclusive telecommunications sector, which supports both consumers and operators, while contributing to the growth of Nigeria’s digital economy. It further committed to ongoing engagement with stakeholders to create a telecommunications environment that benefits all parties involved.
