Tuesday, January 21, 2025

Nigeria approves tariff hikes to protect Telecoms operator margins

The Nigerian Communications Commission (NCC) approved tariff increases for operators in a bid to balance rising operational costs with service quality in Nigeria’s challenging economic climate.

Operators sought to double prices, the NCC capped the increase at 50%, emphasising the need to protect consumers while enabling sustainable industry growth.

In a statement, the NCC noted that tariffs had “remained static” since 2013 despite mounting operational costs. It said the adjustment aims to address a “significant gap between operational costs and current tariffs” while ensuring service delivery to consumers remains unaffected.

The regulator added that higher tariffs would allow operators to invest in infrastructure and fund innovation projects, ultimately benefiting consumers through improved services.

Operators have been mandated to clearly communicate price changes to customers and demonstrate “measurable improvements in service delivery” alongside the increases.

Consumer advocacy group, the National Association of Telecommunications Subscribers (NATCOMS), has vowed to contest the decision. NATCOMS president Deolu Ogunbanjo criticised the NCC for failing to involve subscribers in discussions, despite the regulator’s assertion that it held “extensive consultations with key stakeholders across the public and private sectors.” NATCOMS had previously advocated for a more modest increase of 5–10%.

By Manny Pham, Developing Telecoms

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