NCC rejects telcos’ tactics for tariff hike, cites strategic pressure

A reliable source within the Nigerian Communications Commission (NCC) has revealed that the regulator will not be swayed by the telecom operators’ recent warning of possible service disruptions.

The source suggests that the telcos’ threat to implement a load-shedding formula, similar to that used in the power sector, is a strategic maneuver to push for a tariff hike.

“We recognize the challenging economic environment, but this is not unique to the telecom sector—every industry is facing similar difficulties,” the source stated.

“The suggestion that operators can’t provide quality services due to economic conditions isn’t new; it’s part of their strategy. The real reason they haven’t expanded to areas with access gaps is the low revenue potential in those regions. This latest load-shedding threat is simply an attempt to pressure the regulator into approving a tariff increase, which won’t happen in this manner. We refuse to be arm-twisted by subtle threats.”

This stance from the NCC has sparked concern among telecom subscribers. Chief Deolu Ogubanjo, President of the National Association of Telecom Subscribers (NATCOMS), warned that the responsibility for any collapse in the telecom sector would fall squarely on the NCC.

“Telecom services are now a lifeline for many essential sectors—banking, education, healthcare, and beyond,” Ogubanjo said. “We’ve consistently advocated for fair tariff adjustments to match the high operating costs, but the regulator has done little, even as telcos struggle under mounting financial pressures.”

Ogubanjo highlighted the risk of routine maintenance lapses leading to service downtimes, which would have far-reaching consequences across various sectors. He called for swift action from the NCC, warning that subscribers would hold the regulator accountable if the industry collapses.

The telecom operators, represented by the Association of Licensed Telecom Operators in Nigeria (ALTON), have long called for a more flexible pricing model. According to Engr. Gbenga Adebayo, Chairman of ALTON, the issue is not just about raising tariffs but allowing operators the autonomy to adjust prices in line with operational costs.

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“Sectors like Multichoice and PHCN have the flexibility to adjust prices based on current realities. Our sector needs the same autonomy,” Adebayo argued.

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Despite these appeals, the NCC maintains that the current pricing regime is based on thorough cost-based price determinations. However, telcos insist that the existing model, unchanged for over a decade, is out of sync with the current economic landscape. They argue that without cost-reflective tariffs, the sector’s sustainability is at risk, potentially eroding investor confidence and hindering future growth.

In response to the telcos’ concerns, they have called on the government to address critical challenges facing the industry, including infrastructure deficits, multiple taxation, and inadequate power supply.

They also urged for legislation to protect telecom infrastructure as critical national assets, which is increasingly threatened by escalating security issues in Nigeria.

As the situation unfolds, industry stakeholders and analysts are rallying behind the telcos’ call for a more adaptable pricing model, emphasizing that a sustainable telecom sector is essential for Nigeria’s economic growth and the well-being of its citizens.