Deborah Akinyosoye
The Federal Government, on Monday, approved a new 50 per cent hike in the cost of telephone services in the country. This comes 12 years after the last tariff hike was effected.
This was announced by the Nigerian Communications Commission (NCC) in a statement signed by the Director of Public Affairs, Reuben Muoka.
The new tariff hike comes amid agitations by telecom operators in the last two years for an upward review of the subsisting tariffs. Telecom operators have based their agitations on the negative impact the economy is having on their operations. The operators lamented the impact of naira devaluation, forex instability, vandalism, theft, insecurity, and other factors on their expansion plans.
NCC, in the statement, noted that pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA), to regulate and approve tariff rates and charges by telecommunications operators, it will grant approval for tariff adjustment requests by network operators in response to prevailing market conditions.
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.
These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis, as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.
Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.
These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.