Nigeria Approves 50% Tariff Hike for Telecom Operators, Cites Rising Costs

The Nigerian Communications Commission (NCC) has approved a tariff adjustment of up to 50% for mobile network operators, citing rising operational costs and the need for industry sustainability.

NCC Explains the Decision

In a statement on Monday, the NCC clarified that the tariff increase is significantly lower than the over 100% hike requested by some telecom operators.

“The adjustment takes into account ongoing industry reforms that will positively influence the sustainability of the sector. It also aligns with our commitment to ensuring fairness and transparency under the NCC Guidance on Tariff Simplification, 2024 rules,” the statement read.

The Commission noted that telecom tariffs had remained unchanged since 2013, despite a steady rise in operational expenses. “This move is necessary to bridge the gap between operational costs and current tariffs while maintaining service quality and ensuring uninterrupted connectivity for consumers,” the NCC added.

Industry Stakeholders React

A spokesperson for one of the major network operators, who requested anonymity, described the approval as “a step in the right direction for the survival of the sector.”

They added, “We’ve been operating under immense financial strain due to inflation and the rising costs of maintaining infrastructure. This adjustment gives us some breathing room to continue innovating and improving services for our customers.”

Consumer Impact

The NCC assured consumers that the tariff adjustments would undergo case-by-case reviews to protect their interests.

“We are prioritizing consumer protection while ensuring the telecom industry remains viable for further investments in infrastructure and innovation,” the Commission emphasized.

Telecom user Blessing Okoro expressed concern about the impact on low-income consumers. “I understand the need for telecom companies to stay afloat, but I hope these price increases won’t make communication unaffordable for the average Nigerian,” she said.

The Commission concluded that the adjustment, made after consultations with public and private sector stakeholders, would lead to improved service delivery, better network quality, and expanded coverage for consumers across the country.

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