NCC Approves 50% Tariff Increase For Telecom Providers

NCC Approves 50% Tariff Increase For Telecom Providers

The Nigerian Communications Commission (NCC) has approved a tariff adjustment for telecom operators, stating the need to address rising operational costs. The decision permits a maximum increase of 50% to current tariffs and aligns with the regulatory framework set out in the Nigerian Communications Act of 2003. This announcement was made earlier this week through a statement issued by Reuben Muoka, the NCC’s Director of Public Affairs. The commission emphasized that the adjustments would adhere to the tariff bands defined in its 2013 Cost Study and the 2024 Guidance on Tariff Simplification.

The NCC highlighted that the adjustment is a response to the financial challenges faced by telecom operators. Tariff rates have remained unchanged since 2013, despite a significant increase in the cost of operations. “The adjustment, capped at a maximum of 50% of current tariffs—substantially lower than the over 100% increase requested by some operators—was determined with consideration for ongoing industry reforms aimed at fostering sustainability,” the NCC explained.

Requests for tariff reviews will continue to be evaluated on a case-by-case basis, following the commission’s standard review practices. The NCC stated that the adjustment is critical to maintaining investment in the telecom sector, enhancing infrastructure, and ensuring better service delivery. The revised rates aim to bridge the gap between rising operational costs and the need for quality service delivery to consumers. “This decision emphasizes our commitment to supporting the growth and sustainability of the telecommunications industry while safeguarding consumer interests,” the statement noted.

The NCC reached its decision after extensive consultations with key stakeholders, including representatives from both the public and private sectors. While the commission acknowledged the economic challenges faced by Nigerians, it urged telecom operators to implement the new tariffs transparently. “The commission calls on operators to enhance their service delivery as they adjust their tariff rates. This move should not compromise the quality of service provided to customers,” Muoka added.

To ensure accountability, the NCC will closely monitor the implementation of the new tariffs. Operators are expected to remain compliant with the guidelines outlined in the 2024 Tariff Simplification framework and the 2013 Cost Study.

This tariff adjustment represents a significant step towards balancing operational sustainability for telecom operators while prioritizing consumer interests in Nigeria’s dynamic telecommunications sector.

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