NCC Greenlights Tariff Hike for MTN, Airtel, Other Telecoms

The Nigerian Communications Commission (NCC) announced that it will authorize tariff adjustment requests from Network Operators in light of current market conditions. A statement from Reuben Muoka, the director of Public Affairs at the NCC, indicated that this decision is in line with its authority under Section 108 of the Nigerian Communications Act, 2003 (NCA), which empowers it to regulate and approve tariff rates and charges for telecommunications operators.

The adjustment will be limited to a maximum of 50 percent of existing tariffs, which is less than the over 100 percent increase sought by some network operators. This decision considers ongoing industry reforms that are expected to positively impact sustainability, according to the regulator. These changes will fall within the tariff bands outlined in the 2013 NCC Cost Study, and requests will be evaluated individually, following the Commission’s usual approach for tariff reviews. The implementation will strictly follow the recently released NCC Guidance on Tariff Simplification, 2024.

Tariff rates have remained unchanged since 2013, despite the rising operational costs faced by telecom operators. The approved adjustment aims to bridge the significant gap between operational expenses and current tariffs while ensuring that the quality of services provided to consumers remains intact, as stated by the commission.

These adjustments will enhance the capacity of operators to keep investing in infrastructure and innovation, ultimately benefiting consumers with improved services and connectivity. This includes better network quality, enhanced customer service, and wider coverage, as stated by the NCC in their Monday statement.

Acknowledging public concerns, this decision followed extensive consultations with key stakeholders from both the public and private sectors. 

“The NCC has focused on finding a balance between protecting telecom consumers and ensuring the industry’s sustainability, which also supports thousands of local vendors and suppliers that are vital to the telecommunications ecosystem. 

The NCC understands the financial challenges faced by Nigerian households and businesses and is sensitive to the effects of tariff adjustments. Therefore, the Commission has instructed operators to carry out these adjustments transparently and fairly for consumers. Operators must also educate and inform the public about the new rates while showing measurable improvements in service delivery,” the statement elaborated.

“Furthermore, the NCC reiterates its commitment to nurturing a resilient, innovative, and inclusive telecommunications sector. In addition to consumer protection, the Commission’s initiatives aim to ensure the industry’s long-term sustainability, back local vendors and suppliers, and foster the overall development of Nigeria’s digital economy.”

As a regulatory body, the NCC stated it will persist in engaging with stakeholders to establish a telecommunications environment that benefits everyone – one that safeguards consumers, supports operators, and maintains the ecosystem that facilitates connectivity throughout the nation.