Airtime, data costs rise as NCC approves 50% tariff hike

MaTaZ ArIsInG
Dallas, Texas

TELECOM subscribers in Nigeria will pay higher costs for data and airtime as the  Nigerian Communications Commission (NCC) has approved a 50 per cent tariff adjustment for telecom operators.

The regulatory body cited rising operational costs and the need to sustain the industry as key reasons for the hike.

The tariff hike was the first in 12 years.

In a statement, a spokesman for the regulator, Reuben Muoka, said the price adjustment though lower than the “over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability”.

The regulator said the increase was 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.

“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,” the statement read.

Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators.

The regulator said the approved adjustment 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.”

The NCC said it recognised the financial pressures faced by Nigerian households and businesses and remained empathetic to the impact of tariff adjustments.

As of December 2023, Nigeria had over 224 million subscribers, according to data by the regulator.

MTN boasted of over 87 million subscribers, representing 38.79 per cent of the total market share, the highest in the country by any licensed Mobile Network Operator (MNO). Globacom and Airtel had 61 million subscribers each while 9mobile had 13.9 million users.

Despite the increase, the NCC stressed that protecting consumers remained a priority.

The ICIR reported that the  Nigerian telecommunications companies (TELCOS) had earlier proposed a 100 per cent increase in their tariffs, which they said was subject to approval from the Nigerian Communications Commission(NCC).

The proposal, which has been submitted to the NCC, aimed to address rising operational costs, including inflation and increased service delivery expenses.

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