The Nigerian Communications Commission (NCC) has approved a new 50% increase in the cost of telephone services across the country.
This was announced on Monday in a statement signed by Reuben Muoka, the Director of Public Affairs, NCC.
This is the first upward tariff adjustment in 12 years and is aimed at addressing the operational challenges faced by telecom operators.
Investors King gathered that the telecom operators blamed the increase on the adverse effects of the naira devaluation, forex instability, vandalism, theft, and insecurity in their operations.
These challenges have hampered their ability to expand infrastructure and improve service delivery.
However, while some operators had requested an increase of over 100%, the NCC approved a capped adjustment of 50%.
The commission stated, “Pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA), to regulate and approve tariff rates and charges by telecommunications operators, it will grant approval for tariff adjustment requests by network operators in response to prevailing market conditions.”
The statement stated that the adjustment aligns with the ongoing industry reforms aimed at sustainability and improved service delivery.
The new tariffs will remain within the bands stipulated in the 2013 NCC Cost Study and will be reviewed on a case-by-case basis.
The commission also assured stakeholders that the adjustment would be implemented in strict adherence to its Tariff Simplification of 2024.
“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study,” the statement added. “Requests will be reviewed on a case-by-case basis, as is the Commission’s standard practice for tariff reviews.”
Tariff rates have remained static since 2013, despite rising operational costs in the telecom sector.
“The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised,” the statement read.