HomeFeaturesNCC Greenlights 50% Increase In Telecom Tariffs

NCC Greenlights 50% Increase In Telecom Tariffs

Listen to article

The Nigerian Communications Commission has granted approval to network operators seeking tariff adjustments to address surging operational expenses. This decision, representing the first revision of telecom rates since 2013, highlights the industry’s need to adapt to escalating costs while maintaining service delivery.

In a statement released on Monday by the Director of Public Affairs, Reuben Muoka, it was announced that the approved tariff adjustment will permit a maximum increase of 50%, falling far short of the over 100% hike initially proposed by certain operators.

The Nigerian Communications Commission (NCC) asserted its authority under Section 108 of the Nigerian Communications Act, 2003, to implement the new tariffs. It further clarified that these rates would adhere strictly to the benchmarks established in its 2013 Cost Study, ensuring compliance with existing regulatory frameworks.

The commission stated that the forthcoming adjustments will align with its 2024 Guidance on Tariff Simplification, aiming to uphold both transparency and fairness throughout the implementation process. This commitment ensures that the changes will be carried out in a manner that reflects the commission’s dedication to equitable practices.

“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

“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.

Read also: FG Plans Steep Increase In Telecom Tariffs, Up To 60%

“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised,” the statement said.

The NCC noted that the adjustment was necessary to sustain investment in infrastructure and innovation, benefiting consumers through improved services, better network quality, and wider coverage.

“This decision was made after extensive consultations with key stakeholders across the public and private sectors,” Muoka stated, adding that the commission prioritised balancing consumer protection with industry sustainability.

While recognising the financial pressures faced by Nigerian households and businesses, the NCC mandated operators to implement the new rates transparently and educate consumers on the changes.

Operators are also required to demonstrate measurable improvements in service delivery as part of the adjustments.

“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,” it added.

The Eastern Updates 

Most Popular

Recent Comments