The Nigerian Communications Commission (NCC) has approved a tariff increase for telecom services in Nigeria.
Here are seven important things to note:
1. NCC Approves Up to 50% Tariff Increase
Telecom operators have been granted approval to increase their tariffs by up to 50% within an existing pricing framework that has been in place since 2013. However, they are not required to implement the full 50% hike, as competition may influence pricing decisions.
2. Legal Backing for the Tariff Adjustment
According to Section 108 of the Nigerian Communications Act, 2003, telecom operators cannot increase their service charges without NCC approval. The new adjustment aligns with this regulatory provision.
3. First Tariff Adjustment in Over a Decade
The last approved tariff increase in the telecom sector was in 2013 when Nigeria’s inflation rate was 8.5%. Today, inflation stands at 34.8%, marking a 300% rise, which has significantly affected operational costs.
4. Rising Costs in the Telecom Sector
Telecom companies are major consumers of diesel, spending about ₦40 billion monthly to power over 30,000 cell sites nationwide. The sharp increase in diesel prices and foreign exchange rates has significantly raised the cost of service delivery.
5. NCC Rejected Operators’ Demand for a 100% Hike
Telecom operators initially requested a tariff increase of over 100%, but the NCC approved only 50%. In return, the regulatory body has vowed to enforce strict monitoring of service quality and hold operators accountable for any lapses.
6. Transparency in New Tariff Implementation
Operators are required to clearly communicate the new tariff rates without hidden charges. The NCC has issued a Tariff Simplification Guidance to ensure transparency and prevent deceptive pricing practices.
7. Improved Service Quality is Expected
With the tariff hike, telecom operators—including MTN, Airtel, and 9Mobile—have pledged to invest in better infrastructure to improve service quality. Nigerians are now expecting better network performance, and the NCC has vowed to enforce strict compliance.
As the telecom sector adjusts to the new pricing model, Nigerians will be watching to see if service quality improves in line with the increased costs.
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