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Telcos

NCC Approves Telecom Tariff Increase, Caps at 50%

Muhammad A. Aliyu
By Muhammad A. Aliyu
Published: January 20, 2025
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The Nigerian Communications Commission (NCC) has announced plans to grant tariff adjustment approvals for telecommunications operators in response to prevailing market conditions.

The move, outlined in a press release signed by Reuben Muoka, NCC’s Director of Public Affairs, on Monday, January 20, 2025, the decision was made under Section 108 of the Nigerian Communications Act, 2003 (NCA), which empowers the NCC to regulate and approve tariff rates.

According to the NCC, the tariff increase falls below the over 100 percent hike initially requested by some operators. The regulator emphasized that the adjustment reflects prevailing market conditions and aims to address a significant gap between operational costs and existing tariffs.

“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” the statement read.

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The NCC said the current tariffs had remained static since 2013, despite rising costs of operation for telecom companies.

The commission stated that the new rates would remain within the tariff bands stipulated in the 2013 NCC Cost Study and would be implemented in line with the recently issued NCC Guidance on Tariff Simplification, 2024.

“The adjustment will enable telcos to invest in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage,” the statement said.

The NCC acknowledged concerns from Nigerian households and businesses regarding the financial burden of tariff increases and reassured the public that measures would be taken to protect consumers.

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“Operators are required to implement these adjustments transparently and in a manner that is fair to consumers. Operators must also educate and inform the public about the new rates while demonstrating measurable improvements in service delivery,” the NCC said.

The commission highlighted its commitment to balancing consumer protection with the sustainability of the telecommunications sector, including its ecosystem of indigenous vendors and suppliers.

“Recognising the concerns of the public, this decision was made after extensive consultations with key stakeholders across the public and private sectors. The NCC remains deeply empathetic to the impact of tariff adjustments,” the statement added.

The NCC reiterated its dedication to fostering a resilient and inclusive telecommunications sector, ensuring the long-term sustainability of the industry while supporting the growth of Nigeria’s digital economy.

“Beyond protecting consumers, the Commission’s actions are designed to ensure the long-term sustainability of the industry, support indigenous vendors and suppliers, and promote the overall growth of Nigeria’s digital economy,” it said.

The regulator assured the public that it would continue to engage stakeholders to create an equitable telecommunications environment that balances affordability, innovation, and industry sustainability.

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ByMuhammad A. Aliyu
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Muhammad Ameer Aliyu, is a prolific journalist who joined Okay Nigeria in 2015 with the aim staying committed to bringing more positive growth to the digital news platform. He is the Senior Editor at Okay Nigeria.
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