THE Nigerian Communications Commission (NCC) has approved a 50 per cent tariff increase for telecommunications companies (Telcos) as telephone subscribers in Nigeria will have to pay more for data and airtime.
In a statement on Monday, January, 20, the NCC spokesman, Reuben Muoka, said the price adjustment was considered taking into account ongoing industry reforms that will positively influence sustainability.
The NCC said it approved the increase, pursuant to Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.
“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.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators,” it said.
It hinted 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.
“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,” NCC stated.
The ICIR reported that Telcos have sought a 100 per cent increase in tariffs to address rising operational costs, including inflation and increased service delivery expenses.
Earlier, the Telcos had warned to disrupt services unless the regulator adjusted tariffs to account for escalating operational costs.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.
He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.
In the statement of Monday, the NCC said it recognised the financial pressures faced by Nigerian households and businesses and remained 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 stated.
As of December 2023, Nigeria has over 224 million subscribers, according to official data by the regulator.
It showed that MTN boasts over 87 million subscribers, representing 38.79 per cent of the total market share, Globacom and Airtel have 61 million subscribers, and 9mobile has 13.9 million users.