NCC Approves 50% Tariff Increase for Telecom Operators

January 21, 2025
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The Nigerian Communications Commission (NCC) has approved a 50% tariff adjustment for telecommunications services, citing rising operational costs and the need to sustain industry investments. This marks the first tariff review since 2013.

The decision, announced on Monday in a statement by the NCC’s Director of Public Affairs, Reuben Muoka, follows extensive consultations with stakeholders across the public and private sectors. The commission noted that while some operators had requested over 100% increases, the approved adjustment was capped at 50% to mitigate the financial impact on consumers.

“This adjustment, though lower than the over 100% requested by some network operators, was carefully determined to ensure a balance between sustaining industry operations and protecting consumers,” the NCC stated.

The new tariffs will adhere to limits outlined in the 2013 NCC Cost Study and will be implemented under the framework of the recently issued 2024 Guidance on Tariff Simplification. This ensures transparency and fairness in execution, according to the commission.

The NCC explained that the adjustment is essential for addressing the growing gap between operational costs and existing tariffs, which have remained static for over a decade. Rising costs, such as energy prices, inflation, and infrastructure maintenance, have significantly affected the ability of operators to sustain and expand services.

“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 commission’s statement read.

Muoka added that the decision also prioritises improving service quality and expanding coverage. Telecom operators will be required to implement the new rates transparently and provide consumers with adequate education about the changes.

“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. Operators are mandated to implement these adjustments fairly and demonstrate measurable improvements in service delivery,” the statement continued.

The commission assured Nigerians that the tariff adjustments would ultimately benefit consumers through enhanced network quality and innovation while supporting the digital economy’s growth. The NCC also reiterated its commitment to protecting indigenous vendors and suppliers, who are vital to the telecommunications ecosystem.

“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,” the NCC said.

The NCC emphasized its commitment to ongoing dialogue with stakeholders to ensure a resilient and inclusive telecommunications sector that balances consumer interests with industry sustainability. It also pledged to closely monitor operators to ensure compliance with its guidelines and deliver tangible benefits to consumers.

The tariff adjustment comes as the commission continues its push to foster a robust telecommunications sector that drives connectivity and supports Nigeria’s digital transformation agenda.

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