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NCC Approves 50% Tariff Hike for Telecom Operators

NCC Approves 50% Tariff Hike for Telecom Operators

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January 21, 2025
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NCC Approves 50% Tariff Hike for Telecom Operators

By Our Correspondent

The Nigerian Communications Commission (NCC) has approved a tariff increase for telecommunications companies, citing prevailing market conditions.

Reuben Mouka, the commission spokesperson, announced the decision in a statement on Monday. He explained that this approval aligns with the NCC’s regulatory powers under Section 108 of the Nigerian Communications Act of 2003.

According to Mouka, the adjustment allows for a maximum increase of 50 percent on current tariffs, which is a compromise from the over 100 percent hike initially requested by some network operators.

“The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was determined by considering ongoing industry reforms that will positively influence sustainability,” Mouka stated.

The statement also mentioned, “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 standard practice for tariff reviews by the Commission. Implementation will strictly adhere to the recently issued NCC Guidance on Tariff Simplification, 2024.”

Mouka noted that the tariff rates have remained static since 2013, despite increasing operational costs faced by telecom operators.

“The approved adjustment aims to address the significant gap between operational costs and current tariffs while ensuring that the quality of services provided to consumers is not compromised.

“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage,” he added.

Recognizing public concerns, Mouka stated that this decision was made after extensive consultations with key stakeholders from both the public and private sectors.

“The NCC prioritized striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, which includes thousands of indigenous vendors and suppliers who are crucial to the telecommunications ecosystem.

“The NCC understands the financial pressures faced by Nigerian households and businesses and is empathetic to the impact of these tariff adjustments. Therefore, the Commission has mandated that operators implement these changes transparently and fairly for consumers.”

Mouka emphasized that operators must also educate and inform the public about the new rates while demonstrating measurable improvements in service delivery

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