KEY POINTS
- Current rates are increased to 50 percent maximum adjustment.
- Seeks to reduce operational costs, and maintain industry growth.
- Consumer focus on transparency; improved service delivery.
Telecom tariffs will be adjusted by 50 percent by the Nigerian Communications Commission (NCC). It says operators are paying increasing operational costs while trying to sustain investments in the sector.
NCC Director of Public Affairs Reuben Muoka made this announcement on Monday, January 20, 2024.
Tariff adjustment details
The NCC commented that the adjustment does not fall beyond the appropriate tariff bands as set out in its 2013 Cost Study, and is consistent with its 2024 Guidance on Tariff Simplification.
Telecom operators have asked for over 100 percent and the approved maximum was capped at 50 percent.
The NCC said that the adjustment is designed to narrow the gap between rising operational costs and static tariffs which have stood at zero since 2013.
“After considering ongoing industry reforms to become more sustainable and following extensive consultation, this adjustment was capped at a maximum of 50 per cent of current tariffs.” The NCC said it ensures tariffs are within the limits set in out 2013 Cost Study.
Industry and consumer impact
‘The commission observed that the tariff adjustment is crucial in facilitating continued investment in infrastructure, better delivery of service and further growth of the network development,’ says the commission.
It comes after ‘extensive consultations with key stakeholders in the public and private sectors.’ ‘What we have here is trying to balance out the need for cheap services and also the sustainability of the telecom industry,’ Muoka continued.
However, the NCC also said that this meant telecom operators should be responsible with their implementation of the new rates whilst committing to strengthened network quality and customer service.
Consumer concerns
It acknowledged Nigerians high economic pressures even as it assured that there would be no compromise on the quality of services being provided. It asked operators to explain to consumers in advance the changes and for the new rates to reflect value improvements.
