Telecom Companies Await NCC Approval for Tariff Increase
Telecommunications operators in Nigeria are waiting for the Nigerian Communications Commission (NCC) to release detailed guidelines on implementing the recently announced 50% tariff hike. This document, known as a “determination document,” will outline the framework, terms, and conditions for the tariff adjustment.
Under the new policy, telecom operators will be allowed to adjust prices within the tariff bands of N6.40 to N50, as established in the NCC’s 2013 Cost Study. Implementation is set to begin in February, following discussions during a virtual stakeholders’ meeting last Monday.
Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria, explained that the Nigerian Communications Act 2003 governs tariff adjustments. He emphasized the importance of the determination document in ensuring compliance and fairness, stating, “Unlike the price of tomatoes in a market, telecommunications tariffs are strictly regulated.”
For over a decade, telecom tariffs have remained unchanged despite rising costs driven by inflation, currency fluctuations, and significant investments to meet growing consumer demand. These factors have strained the sector, a critical contributor to Nigeria’s digital economy, accounting for 14% of GDP.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, clarified that the tariff hike follows an established regulatory process. He noted that operators must work within approved price bands and seek the NCC’s approval for adjustments.
Telecom operators initially requested a 100% hike to offset rising operational costs, but the NCC approved a 50% increase. Despite this adjustment, systemic challenges persist in the industry, leaving operators grappling with financial sustainability.
In response to the hike, the National Association of Telecoms Subscribers has demanded a reduction from 50% to 10% by January 29, 2025, threatening legal action if the NCC does not comply. The association also criticized the Nigerian Labour Congress (NLC) for its planned protest, urging the union to focus on workers’ welfare instead of telecommunications issues.
