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NCC Approves 50% Tariff Hike for Telecom Operators

Kehinde Fajobi

The Nigerian Communications Commission (NCC) has approved a tariff adjustment for telecom operators, allowing a maximum increase of 50% in response to rising operational costs.

Reuben Muoka, the NCCโ€™s Director of Public Affairs, announced the development in a statement on Monday, 20 January 2024.

The commission explained that the decision aligns with Section 108 of the Nigerian Communications Act, 2003, and is guided by its 2013 Cost Study and the 2024 Guidance on Tariff Simplification.

โ€œThe adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,โ€ the statement read.

It further clarified that the new rates would remain within the tariff bands set in the 2013 NCC Cost Study and would be reviewed on a case-by-case basis, following the commissionโ€™s standard practice for tariff evaluations.

Highlighting the necessity of the adjustment, the NCC noted that telecom tariffs have remained unchanged since 2013, despite rising operational expenses.

โ€œThe 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,โ€ it stated.

The commission emphasised that the revised rates would help sustain investment in infrastructure, enhance service delivery, and expand network coverage.

โ€œThis decision was made after extensive consultations with key stakeholders across the public and private sectors,โ€ Muoka added.

While recognising the economic challenges Nigerians face, the NCC urged operators to implement the new tariffs transparently and focus on improving service quality for consumers.