NCC Approves 50% Tariff Increase for Telecom Operators Amid Rising Costs

Ncc
NCC Approves 50% Tariff Increase for Telecom Operators Amid Rising Costs

The Nigerian Communications Commission (NCC) has approved a tariff increase of up to 50% for telecommunications operators in Nigeria. The adjustment comes in response to rising operational costs and evolving market conditions, marking the first tariff review since 2013. The decision, made under the powers granted to the NCC by Section 108 of the Nigerian Communications Act, 2003 (NCA), aims to address the financial challenges faced by operators while ensuring the continued delivery of quality services to consumers.

The approved tariff increase is significantly lower than the over 100% requested by some network operators, reflecting the NCC’s effort to strike a balance between sustaining the industry and protecting consumers. The adjustments will remain within the tariff bands outlined in the NCC’s 2013 Cost Study and will follow the recently issued NCC Guidance on Tariff Simplification, 2024.

Over the years, telecom operators have grappled with increasing operational costs driven by inflation, rising energy prices, and economic pressures. The NCC stated that the adjustment is necessary to bridge the widening gap between operational expenses and current tariffs. The move is expected to enable telecom companies to continue investing in infrastructure, expand network coverage, enhance service quality, and support innovation within the sector.

Read Also:NCC Strategic Vision Plan (SVP) Nears Completion as Gains are Highlighted

The commission emphasized that the decision was made after extensive consultations with key stakeholders across the public and private sectors. The NCC acknowledged the financial strain on Nigerian households and businesses and expressed empathy for the potential impact of the tariff adjustments. To mitigate these effects, it has mandated that operators implement the changes transparently, educate consumers about the new rates, and demonstrate measurable improvements in service delivery.

The NCC reaffirmed its commitment to fostering a resilient and inclusive telecommunications sector that benefits consumers, supports operators, and sustains the broader ecosystem of vendors and suppliers integral to the industry. It assured Nigerians that the adjustments are part of broader reforms aimed at ensuring the long-term sustainability of the sector, which is critical to the nation’s digital economy and socio-economic development.

As the new tariffs take effect, the NCC will closely monitor their implementation to ensure compliance with its directives and to guarantee that consumers experience improved services as promised by the operators.

Read Also: NCC, FCCPC Sign MoU to Protect Telecom Consumer Rights

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