NCC Endorsess Telcos’ Tariff Increase, Limits Hike to 50%

The Nigerian Communications Commission (NCC) has officially approved a tariff increase for telecommunications companies (telcos), marking a development in the country’s telecom sector. In a statement released on Monday by Reuben Muoka, the Director of Public Affairs at NCC, the decision follows the commission’s regulatory powers under Section 108 of the Nigerian Communications Act, 2003 (NCA), which governs tariff adjustments for telecom operators.

The increase, which is capped at 50 percent, is a compromise from the initial requests by telecom companies, some of which sought a 100 percent hike. According to the NCC, the adjustment is a response to the prevailing market conditions and aims to address the growing operational costs faced by operators since tariff rates have remained unchanged since 2013.

The commission emphasized that this decision would help balance the need for telecom companies to remain financially viable and the necessity of protecting consumers from excessive costs. “The adjustment, although lower than the over 100 percent requested by some operators, was carefully considered in light of ongoing industry reforms designed to ensure long-term sustainability,” said the NCC.

NCC has stressed that the tariff hike will support investments in telecom infrastructure, which is crucial for improving network quality, enhancing customer service, and expanding coverage. This, in turn, will benefit consumers through better services and connectivity. The commission has also made it clear that these adjustments will be monitored closely and implemented transparently, ensuring that telcos provide measurable improvements in service delivery.

“The adjustment will enable operators to invest in critical infrastructure and innovation, ultimately benefiting the consumers through better and more reliable services,” the NCC explained.

In making this decision, the NCC engaged in extensive consultations with key stakeholders from both the public and private sectors, aiming to strike a balance between safeguarding consumers’ interests and ensuring the industry’s financial health. The commission also acknowledged the financial pressures that Nigerian households and businesses face, ensuring that the tariff increase would be implemented in a fair and transparent manner.

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The telecom regulator emphasized that the tariff adjustment is part of a broader effort to foster a resilient, innovative, and inclusive telecommunications sector. It aims to not only protect consumers but also ensure the long-term sustainability of the industry, support local vendors and suppliers, and promote the growth of Nigeria’s digital economy.

In response to concerns about potential service cuts due to ongoing financial challenges, NCC highlighted that the tariff increase would address the gap between operational costs and the current tariff rates, ensuring that service delivery to consumers remains unaffected.

This approval comes after several warnings from industry players, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON), which had earlier raised concerns about the potential for service disruptions if tariffs were not adjusted. In early January, the Association of Telecommunications Companies of Nigeria (ATCON) also called for a tariff review, with some operators, like MTN Nigeria’s CEO Karl Toriola, advocating for a 100 percent increase.