The Nigerian Communications Commission authorized telecom operators’ request to modify their tariff rate in response to the escalating operational expenses.
The NCC’s Director of Public Affairs, Reuben Muoka, signed a statement on Monday, January 20, 2024, announcing this development, which permits a maximum 50% adjustment to present tariffs.
According to the Nigerian Communications Act, 2003, Section 108, the adjustment is in compliance. The NCC also stated that the revised prices will stay within the parameters specified in its 2013 Cost Study.
Additionally, the commission stated that the changes will comply with its 2024 Guidance on Tariff Simplification.
The statement reads in part, “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.”
The commission stated that the modification was required to maintain investments in innovation and infrastructure through enhanced network quality, expanded coverage, and better services.
“This decision was made after extensive consultations with key stakeholders across the public and private sectors,” Muoka said.
The commission asked operators to enhance their service performance and apply the new prices in a transparent manner, while also appreciating the financial strain Nigerians are under.