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NCC’s 50% Telecom Tariff Hike Sparks Controversy Amid Rising Costs in Nigeria

adminadminJanuary 20, 2025 2341 Minutes read0
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By Jemimah Wellington, JKNewsMedia Reporter 

THE ONGOING dispute over telecoms tariffs in Nigeria has intensified as rising operational costs push operators to the brink.

In a bid to address these challenges, the Nigerian Communications Commission (NCC) has approved a 50% tariff adjustment, aiming to balance industry sustainability with consumer interests.

For over a decade, telecom tariffs in Nigeria have remained unchanged, even as operators grapple with skyrocketing operational costs.

This increase, capped at 50%, falls short of the over 100% hike some providers initially sought.

The NCC, exercising its authority under Section 108 of the Nigerian Communications Act, 2003, emphasised that the new rates adhere to the tariff bands established in its 2013 Cost Study and follow the 2024 Guidance on Tariff Simplification.

Telecom subscribers, however, face a sharp rise in call and data costs.

Advocacy group ATCIS has condemned the adjustment, describing it as an added burden to consumers already battling economic hardships.

During a recent press conference, ATCIS President Sina Bilesanmi criticised operators for pressuring the NCC while neglecting dialogue with advocacy bodies.

Operators argue that rising diesel prices, used to power telecom infrastructure, leave them no choice but to seek higher rates.

Meanwhile, ATCIS insists the tariff adjustment is premature, warning it could lead to further impoverishment of subscribers.

NCC reiterated its dedication to ensuring fairness in the adjustment process.

It directed operators to transparently inform consumers about the changes and deliver measurable improvements in service quality, such as better connectivity and expanded coverage.

As of December 2023, Nigeria recorded over 224 million telecom subscribers, with MTN leading the market at 87 million users.

The adjustments aim to sustain investment in infrastructure while preserving industry stability.

ATCIS remains firm, urging the government to adopt policies that ease industry challenges without shifting the burden onto consumers.

In a debate that stresses the broader struggle to balance consumer interests with the financial sustainability of Nigeria’s telecom sector, which plays a crucial role in the nation’s digital economy; Deacon Simon Oladipopo, an ATCIS executive, called on telecom operators to avoid using operational costs as a pretext for unfair price hikes.

Tags
Consumer AdvocacyNigerian economyTelecom Industry
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