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FCCPC to Telecoms: Link Tariff Hike to Better Service

byGrace Amos
January 22, 2025
in Breaking News, Business
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The Federal Competition and Consumer Protection Commission (FCCPC) has urged telecommunications operators to prioritise tangible service improvements following the Nigerian Communications Commission’s (NCC) recent approval of a 50% increase in telecom tariffs.

In a statement released on Wednesday via its official X handle, the FCCPC acknowledged the rising operational costs faced by telecom providers but maintained that consumer interests must remain central to any tariff adjustments.

“We unequivocally state that consumer interests remain paramount,” the FCCPC said. “It is crucial that tariff adjustments directly translate into demonstrable and tangible service enhancements.”

The commission commended the NCC for its balanced approach to approving the tariff hike, noting that the 50% increase was significantly lower than the initial proposal of over 100% by telecom operators. It praised the NCC for linking the tariff hike to measurable service quality improvements and introducing measures to minimise financial strain on consumers.

“We commend the NCC for adopting a deliberate and measured approach by rationalising the tariff adjustment and linking it to commensurate improvements in service quality,” the FCCPC added.

The FCCPC welcomed a new directive from the NCC requiring telecom operators to ensure greater transparency in their tariff plans. Under this directive, operators must disclose critical plan details upfront, including costs, validity periods, and benefits. A mandatory disclosure table will also be implemented to help consumers make informed decisions and avoid hidden charges.

“Consumers should no longer have to worry about hidden charges or unexpected costs,” the FCCPC stated.

The commission highlighted the persistent issues of poor service quality, including dropped calls, network congestion, inconsistent internet speeds, and inadequate customer service. It noted that consumers had long called for these issues to be addressed before any tariff increases were considered.

The FCCPC underscored the importance of accountability, urging telecom operators to allocate the additional revenue from the tariff hike toward infrastructure development and improved service delivery.

“Operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment,” the FCCPC said.

To ensure proper oversight, the FCCPC referred to its Memorandum of Understanding (MoU) with the NCC, which underscores their joint commitment to consumer protection, fair competition, and the elimination of exploitative practices.

“Operators must clearly communicate the rationale for the tariff adjustments to consumers, ensuring they are fully informed about how these changes align with efforts to improve service delivery and infrastructure,” the commission added.

The FCCPC stressed that the effectiveness of these measures would be closely monitored to ensure that consumers benefit from improved network services and overall customer experience.

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Grace Amos

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