The Nigerian Communications Commission (NCC) has announced plans to grant tariff adjustment requests by telecommunications network operators, exercising its authority under Section 108 of the Nigerian Communications Act, 2003 (NCA). The adjustments are in response to prevailing market conditions and aim to ensure sustainability within the industry while balancing consumer interests.
The approved tariff adjustment will be capped at a maximum of 50% of current rates, significantly lower than the over 100% increase requested by some network operators. This decision was reached after considering ongoing industry reforms expected to enhance the long-term sustainability of the telecommunications sector.
The adjustment will remain within the tariff bands established by the 2013 NCC Cost Study and will be implemented in strict adherence to the 2024 NCC Guidance on Tariff Simplification. Each request will be reviewed individually, following the Commission’s standard practice for tariff reviews.
Rationale Behind the Adjustment
Telecom tariff rates in Nigeria have remained unchanged since 2013, despite a steady rise in operational costs for network operators. This has created a significant gap between the cost of service delivery and existing tariffs. The approved adjustments are designed to:
- Address this disparity while ensuring the quality of services to consumers is not compromised.
- Support operators in maintaining and expanding infrastructure, leading to better service delivery, enhanced network quality, and greater coverage.
- Enable continued innovation within the industry to meet evolving consumer needs.
Consumer Impact and Protections
Acknowledging public concerns, the NCC emphasized its commitment to protecting consumers while ensuring a sustainable industry ecosystem. This decision followed extensive consultations with stakeholders from both the public and private sectors.
The NCC has mandated that operators implement the adjustments with full transparency and fairness. To this end:
- Operators are required to inform and educate consumers about the new tariff rates.
- Service providers must demonstrate measurable improvements in network quality, customer service, and overall service delivery.
Read also: NCC & FCCPC Collaborate to Improve Consumer Experience in Telecom.
Supporting a Resilient Industry
Beyond addressing tariff challenges, the NCC reaffirmed its dedication to fostering a robust, innovative, and inclusive telecommunications sector. The Commission’s actions aim to:
- Protect consumers and their interests.
- Ensure the long-term sustainability of the industry.
- Support thousands of indigenous vendors and suppliers integral to the telecommunications value chain.
- Drive the growth of Nigeria’s digital economy.
Commitment to Stakeholder Engagement
As the regulatory body overseeing the telecommunications sector, the NCC reiterated its commitment to engaging stakeholders in creating a balanced and thriving ecosystem. The Commission assured the public that it will continue to monitor the implementation of these adjustments and ensure that consumer interests remain a top priority.
By aligning tariff rates with market realities, the NCC seeks to create an environment that fosters innovation, supports operators, and sustains connectivity for millions of Nigerians. This decision underscores the Commission’s role as a key enabler of a resilient and inclusive telecommunications sector.
