The Federal Government has approved a new 50% increase in the cost of telephone services across Nigeria. This marks the first adjustment in 12 years since the last tariff hike.
The Nigerian Communications Commission (NCC) announced the development in a statement issued on Monday, signed by its Director of Public Affairs, Reuben Muoka.
Telecom Operators’ Push for Tariff Review
The tariff adjustment comes after prolonged agitations by telecom operators over the past two years, citing the negative economic environment impacting their operations. Operators have raised concerns over naira devaluation, forex instability, vandalism, theft, insecurity, and other challenges that have hindered their expansion plans.
Regulatory Approval for Tariff Adjustment
In the statement, the NCC highlighted that the adjustment was granted under its authority, as provided by Section 108 of the Nigerian Communications Act, 2003 (NCA). The Commission noted that the approved 50% hike—significantly lower than the over 100% increase proposed by some operators—was carefully considered to reflect current market realities and ongoing industry reforms aimed at fostering sustainability.
According to the NCC, the adjustments will align with the tariff bands specified in the 2013 NCC Cost Study and will be evaluated on a case-by-case basis. This is consistent with the Commission’s standard practice for tariff reviews and in adherence to its newly issued Guidance on Tariff Simplification, 2024.
Addressing Operational Challenges
Tariff rates for telephone services have remained unchanged since 2013, despite rising operational costs faced by telecom operators. The NCC’s statement emphasized that the new tariff adjustment aims to bridge the widening gap between operational expenses and revenue from current tariffs, ensuring uninterrupted service delivery to consumers.
“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,” the NCC noted.
Positive Impacts on the Industry
The tariff review is expected to bolster the telecom industry’s sustainability while enabling operators to cope with economic challenges. This, in turn, will facilitate better services and enhanced connectivity for Nigerian consumers, ensuring a win-win for both operators and end-users.