On Monday, the Federal Government approved a 50% increase in telecom service tariffs, marking the first price hike in 12 years.
The Nigerian Communications Commission (NCC) announced the decision in a statement signed by its Director of Public Affairs, Reuben Muoka.
This tariff increase follows years of requests from telecom operators for a revision of the existing tariffs.
The operators have cited several challenges, including the devaluation of the naira, foreign exchange instability, vandalism, theft, insecurity, and other economic factors that have affected their operations and expansion plans.
The NCC, exercising its authority under Section 108 of the Nigerian Communications Act (NCA) of 2003, stated that it had approved the tariff adjustment to reflect prevailing market conditions.
The new tariffs will be capped at a maximum of 50% of the current rates, which is lower than the more than 100% increase that some telecom operators had initially sought.
The decision was made after considering the ongoing reforms in the telecom industry, which are expected to enhance the sector’s sustainability.
The adjustments will remain within the tariff bands set by the NCC’s 2013 Cost Study and will be reviewed on a case-by-case basis, in line with the Commission’s standard practices for tariff changes.
The implementation will also adhere to the newly issued NCC Guidance on Tariff Simplification, 2024.
The NCC noted that telecom tariffs have remained unchanged since 2013, despite rising operational costs.
The approved adjustment aims to bridge the gap between these increasing costs and the existing tariffs, while ensuring that telecom services to consumers are not disrupted.
The revised tariffs are expected to support the telecom operators’ ability to invest in infrastructure and innovation, which will ultimately lead to improved service delivery, better network quality, and wider coverage for consumers.
