NCC Approves 50% Telecom Tariff Adjustment Amid Industry Challenges

The Nigerian Communications Commission (NCC) has approved a tariff adjustment for telecommunications operators, with a maximum increase of 50 percent, following a review of the sector’s rising operational costs.

The decision comes after years of unchanged tariff rates since 2013, despite mounting inflation and other economic pressures. Telecom operators had been requesting tariff hikes exceeding 100 percent to address the growing gap between their operational costs and existing rates. However, the NCC opted for a more measured adjustment to balance industry needs with consumer protection.

In a statement issued by the NCC’s Director of Public Affairs, Reuben Muoka, the commission clarified that the new tariffs would adhere to the 2013 NCC Cost Study guidelines. Adjustments will be reviewed on a case-by-case basis, and will comply with the NCC’s 2024 Guidance on Tariff Simplification, ensuring transparency and clarity in implementation.

The telecom industry has been grappling with challenges such as rising fuel costs and currency devaluation, which have compounded financial pressures on operators. The tariff increase is seen as necessary to sustain the industry, enabling telecom companies to continue investing in infrastructure and improving service quality.

The NCC emphasized that the tariff hike aims to enhance service delivery, expand network coverage, and improve customer service. To mitigate the impact of higher tariffs on consumers, the commission has mandated that telecom operators implement the changes transparently, with clear communication regarding the new rates and expected service improvements.

The decision follows extensive consultations with both public and private sector stakeholders. The NCC reiterated its commitment to balancing consumer protection with the long-term sustainability of the telecommunications sector.

Acknowledging the financial challenges faced by Nigerian households, the NCC also expressed support for local vendors and suppliers in the telecom ecosystem. The commission emphasized its ongoing efforts to foster a resilient and innovative telecom industry, which will contribute to the growth of Nigeria’s digital economy.

The statement read in part: “The Nigerian Communications Commission (NCC), under Section 108 of the Nigerian Communications Act, 2003 (NCA), has approved tariff adjustments in response to prevailing market conditions. The adjustment, capped at a maximum of 50 percent, reflects the need for industry reforms that support sustainability. Despite some operators requesting over 100 percent increases, the approved adjustments will maintain service quality without compromising consumer interests. Each request will be reviewed on a case-by-case basis, and the implementation will follow the recently issued NCC Guidance on Tariff Simplification, 2024.”

The NCC concluded by reaffirming its commitment to a balanced, sustainable telecom environment, which supports both consumers and operators, while driving the growth of Nigeria’s digital economy.