The Nigerian Communications Commission (NCC) has approved a landmark 50% tariff adjustment for telecommunications companies, the first such increase in nearly eleven years. This decision comes amidst rising operational costs, economic pressures, and the need to sustain the telecommunications sector, which has been grappling with significant challenges, including a naira devaluation and inflation.
Striking a Balance Between Consumer Protection and Industry Sustainability
The adjustment was announced in a statement by the NCC, which emphasized its role in balancing the needs of consumers with the long-term sustainability of the telecommunications sector. While telecom operators had requested a 100% increase in voice and data tariffs, the NCC limited the hike to a maximum of 50% after extensive consultations with stakeholders in the public and private sectors.
According to the NCC, “The adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”
The regulator noted that the new tariffs would adhere to the 2013 NCC Cost Study tariff bands and be implemented transparently under the recently issued NCC Guidance on Tariff Simplification, 2024.
Why the Adjustment Was Necessary
For over a decade, the cost of voice and data services in Nigeria has remained unchanged, even as inflation and devaluation drove up operational expenses for telecom companies. Mounting losses in the sector forced telcos to engage with the NCC in October 2024, advocating for a 100% tariff increase. However, the regulator recognized the potential backlash such a move could generate, opting instead for a more measured 50% increase.
The adjustment aims to provide much-needed relief for telecom operators, enabling them to invest in infrastructure upgrades, improve network quality, and support indigenous vendors and suppliers critical to the ecosystem.
Transparency and Consumer Awareness
Recognizing the impact on consumers, the NCC mandated that telecom operators implement the new tariffs transparently and educate the public on the changes. Additionally, operators are required to demonstrate measurable improvements in service delivery, ensuring that consumers benefit from the adjustments.
“The NCC remains empathetic to the financial pressures faced by Nigerian households and businesses and is committed to mitigating the impact of these changes,” the statement added.
