Revert to Old Prices FG Tells Telecommunications Operators

The federal government has instructed telecom operators in the country to revert back to the old price and abolish the 10 percent increase in calls and data tariffs.

This was disclosed by the Nigerian Communications Commission (NCC) in a statement on Wednesday.

NCC had earlier approved the increment before its analysis showed that given Nigeria’s current economic reality and business environment, many Nigerians would struggle with the increment. Hence, the decision to direct telecommunications companies to revert back to the old price.

The NCC statement read in part, “The consideration for 10% approval for tariff adjustments for different voice and data packages was in line with the mandates of the Commission as provided by the Nigerian Communications Act, 2003, and other extant Regulations and Guidelines, as this was within the provisions of the existing price floor and price cap as determined for the industry.

“The decision was also taken after a critical and realistic review and analysis of the operational environment and the current business climate in Nigeria, as it affects all sectors of the economy,

“Much as there is an increase in the cost of production, the provision of telecom services is still very profitable and it is necessary that the subscribers are not subjected to a hike in charges.

“In view of the above, the Commission, through a letter sent on the 12th of October 2022, has already directed the affected Mobile Network Operators to reverse the upward tariff adjustment.

“The Commission will carry out further consultations with all industry stakeholders on the best approaches that will protect and uphold the interest of both the consumers and the service providers.”

The 10 percent increase saw MTN’s subscription of 2.5 gigabytes move from N500 to N550, while Airtel 40GB subscription increased from N5000 to N5500.

With the jumped in inflation rate to 20.77% in September and weak wage growth, it was necessary for the NCC to order telco operators to put the increment on hold to no compound the plight of the Nigerian people, Investors King understands.