NCC caps telecom tariff hike at 50% to address industry challenges

The Nigerian Communications Commission (NCC), leveraging its authority under Section 108 of the Nigerian Communications Act, 2003 (NCA), has announced plans to approve tariff adjustments for telecommunications operators in response to evolving market dynamics.

The adjustment, capped at 50% of current tariffs, falls significantly below the over 100% hike proposed by some operators. This decision reflects the NCC’s commitment to balancing industry sustainability with consumer protection.

The revised rates were determined after careful consideration of ongoing reforms aimed at fostering a robust and sustainable telecommunications sector.

The NCC emphasized that the adjustments will adhere to the tariff bands established in the 2013 NCC Cost Study.

Each operator’s request will be evaluated individually, consistent with the Commission’s standard tariff review practices. Additionally, the implementation of these changes will strictly comply with the NCC Guidance on Tariff Simplification, 2024.

Since 2013, tariff rates in the telecom sector have remained unchanged, despite the mounting operational costs faced by service providers. The approved adjustments are intended to bridge the widening gap between these costs and existing tariffs.

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By doing so, the NCC aims to ensure operators can continue delivering high-quality services while maintaining financial viability.

The Commission stated that the revised tariffs would enable operators to make critical investments in infrastructure and innovation, ultimately benefiting consumers. These benefits include improved network quality, expanded coverage, enhanced customer service, and a more resilient telecommunications framework.

This decision follows extensive consultations with key stakeholders across the public and private sectors.

The NCC reaffirmed its commitment to striking a balance between safeguarding consumer interests and supporting the sustainability of the telecom industry.

Acknowledging the economic pressures faced by Nigerian households and businesses, the NCC has directed operators to implement the adjustments transparently and equitably.

Operators are also required to educate consumers about the new rates and demonstrate tangible improvements in service delivery as part of the adjustment process.

The NCC has reiterated its dedication to fostering an inclusive and resilient telecommunications sector that supports both consumers and operators.

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Beyond ensuring affordability, the Commission’s actions aim to sustain the broader ecosystem, including indigenous vendors and suppliers critical to the industry.

The NCC also emphasized its role in promoting the growth of Nigeria’s digital economy, stating: “As a regulator, we are committed to creating a telecommunications environment that works for everyone—one that protects consumers, supports operators, and sustains the ecosystem driving connectivity across the nation.”

By approving these tariff adjustments, the NCC aims to strike a balance between consumer affordability and the industry’s long-term sustainability, ensuring that Nigeria’s telecommunications sector remains a key driver of economic growth and innovation.