It Is Official: NCC Approves 50% Tariff Increase For Telecom Operators

Following the push by telecom operators in Nigeria for a 100% increase in tariffs, the Nigerian Communications Commission (NCC) has granted approval for tariff adjustment requests by Network Operators in response to prevailing market conditions.

But the approval is not for the requested 100% tariff increase that telcos asked for. Instead, the NCC says telecom operators will get a maximum of 50% of current tariffs. Below is an excerpt from the official statement from the NCC:

The adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators was arrived at taking into account ongoing industry reforms that will positively influence sustainability. These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.

Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. 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. These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.

In October 2024, Starlink announced a 100% tariff hike in its subscription rates, sparking an uproar from both subscribers and other service providers in the country. The company quickly backed down after the NCC insisted that the increase was without regulatory approval. In December, Starlink followed up with an announcement that it’s new tariffs will take effect from the end of January 2025.

It looks like Starlink got approval for a 100% tariff increase from the NCC, while mobile network operators and other telecom operators are getting approval for a maximum of 50% increase on existing tariffs.

Admittedly, a 100% hike in telco voice, SMS, and data tariffs would be a big hit on the purses of millions of subscribers. At the same time, considering that the last time telecom operators had a tariff increase was a decade ago, one hopes that the 50% hike is adequate to keep them running smoothly.

Nearly every Nigerian can testify to having being subjected to terrible quality of service in the last one year, at least, as operators have struggled to keep their networks running against all odds.

References

PRESS STATEMENT: NCC Approves Request for Tariff Adjustments by Operators: link.