Telephone subscribers in Nigeria will experience higher costs for data and airtime as the Nigerian Communications Commission (NCC) has approved a 50% tariff increase for telecom operators. The decision, announced on Monday, reflects adjustments to address rising operational costs faced by operators while maintaining service quality.

NCC’s Statement on the Tariff Adjustment

Reuben Muoka, the NCC’s spokesperson, explained that the increase was significantly lower than the "over 100% requested by some network operators." The regulator arrived at the 50% adjustment after considering ongoing industry reforms aimed at sustaining the telecom sector.

The tariff adjustment falls under the NCC’s authority as stipulated in Section 108 of the Nigerian Communications Act, 2003 (NCA), which empowers the Commission to regulate and approve tariff rates for telecommunications services.

“These adjustments will remain within the tariff bands outlined in the 2013 NCC Cost Study,” the NCC noted, adding that future requests will be reviewed individually under its 2024 Guidance on Tariff Simplification.

Reasons for the Increase

The NCC highlighted that tariff rates for telecom services have remained static since 2013, even as operators have faced increasing operational costs. The adjustment is aimed at narrowing the gap between rising expenses and stagnant tariffs, ensuring service delivery is not compromised.

According to the NCC:

• The adjustment will enable operators to invest in infrastructure and innovation.
• Consumers are expected to benefit from improved network quality, enhanced customer service, and broader coverage.

Commitment to Fairness and Transparency

The NCC acknowledged the economic pressures faced by Nigerian households and businesses. To mitigate the impact of the adjustment:

• Operators must implement the new rates transparently and fairly.
• Telecom providers are required to educate consumers on the new tariffs and demonstrate tangible improvements in service delivery.

Nigeria’s Growing Telecom Market

As of December 2023, Nigeria had over 224 million telephone subscribers. MTN leads the market with 87 million subscribers, accounting for 38.79% of the total share, followed by Globacom and Airtel, each with 61 million users. Meanwhile, 9mobile serves 13.9 million subscribers.

The NCC emphasized that this tariff increase is a step toward sustaining the telecom industry while ensuring that consumers continue to enjoy quality services despite rising costs.