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The Nigerian Communications Commission (NCC) has assented to a 50% increase in telecom tariffs for companies operating in the country. Its decision was announced via a press statement.

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With this announcement, Nigerians may now expect to pay substantially higher fees for voice calls and internet access for the first time since 2013. The statement, signed by the NCC’s Director of Public Affairs, Reuben Muoka, noted that the commission’s action was in line with Section 108 of the Nigerian Communications Act (2003). It also indicated that the NCC would follow its 2024 Guidance on Tariff Simplification, and ensure that implementation is fair and transparent. According to the commission, the 50% increase in telecom tariffs was “lower than the over 100% of current tariffs requested by some network operators.” But it also said that the cap was arrived at after considering “ongoing industry reforms” and “extensive consultations with key stakeholders across the public and private sectors.”

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In its words:

“The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services is not compromised.”

The Minister of Communications and Digital Economy, Bosun Tijani, had earlier indicated that the Federal Government would agree to a tariff hike but suggested that it would not accept an increase above the 60% mark. Recall that, at the start of the year, telecoms executives had called for a 100% rise in tariffs. They cited a sharp increase in operating costs and the need for fresh investments in the industry as reasons for this. Prior to this, telecoms companies had warned that they might have to scale back service provision across the country, owing to financial difficulties. Their calls were initially rejected by many consumers, who argued that an already harsh economic climate could be worsened by such a move. However, some stakeholders have since softened their stance and indicated agreement with limited fee adjustments on the condition that telcos improve the quality of services they render.

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Meanwhile, the Association of Telecommunication Companies of Nigeria (ATCON) has applauded the Federal Government’s approval of a tariff hike. The body also asked for the revision to be implemented in the first quarter of the year, to allow Mobile Network Operators (MNO) to begin planning accordingly.

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This article was first published on 11th February 2025
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ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.