The Nigerian Communications Commission (NCC) on Monday approved a 50% tariff increase for telecoms operators in the country. With this approval, telephone subscribers will have to pay more for data and airtime
Reuben Muoka, a spokesman for the regulator, in a statement, said the price adjustment though lower than the “over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability”
However, a socio-political group, THE COLLECTIVE MOVEMENT (TCM), had expressed sadness over the Federal Government’s plan to increase telecom tariffs and advised it to reconsider.
The group stated this during a meeting of its national leaders, saying that Nigerians are already facing economic challenges and that increasing telecom tariffs will further burden citizens, especially low-income households.
“Telecom services play an important role in connecting people, facilitating education, and providing access to essential services. A tariff hike may have negative social implications, particularly for vulnerable populations.
“The FG should provide clear justification and transparency regarding the need for a tariff hike by ensuring that any increases are fair, reasonable, and in the best interest of Nigerians,’’
TCM added that a tariff hike will contribute to inflation, explaining that telecom services are essential for businesses and individuals.
The group in a statement, said that price increases would trickle down to other sectors, such as the Small and Medium Enterprises (SMEs) which rely heavily on telecom services.
“A tariff hike will increase operational costs, and reduce productivity and competitiveness. Increased tariffs are to widen the digital divide, as marginalised communities may struggle to afford telecom services, thereby exacerbating existing social and economic inequalities.
“Rather than increasing tariffs, the government should explore alternative revenue streams, such as taxing multinational tech companies operating in Nigeria or investing in infrastructure development. The Nigerian Communications Commission (NCC) should also prioritise consumer protection and ensure that telecom operators do not exploit subscribers with excessive price increases.
“Reliable and affordable telecom services are crucial for national security. A tariff hike will compromise the ability of security agencies to communicate and respond effectively to threats,’’ My Young, the National Leader of TCM said.
Young noted that tariff hikes may make Nigerian telecom services less competitive, driving businesses and investors to neighboring countries.
The regulator said the increase was according to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.
“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,” the statement read.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators.
“The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.
“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 said it recognised the financial pressures faced by Nigerian households and businesses and remained empathetic to the impact of tariff adjustments.
“To this end, the Commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers. Operators are also required to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery,” the regulator said.
As of December 2023, Nigeria has over 224 million subscribers, according to official data by the regulator. MTN boasts over 87 million subscribers, representing 38.79% of the total market share, the highest in the country by any licensed Mobile Network Operator (MNO). Globacom and Airtel have 61 million subscribers each while 9mobile has 13.9 million users.
