NCC Approves 50% Tariff Increase for Telecom Operators

The Nigerian Communications Commission (NCC) has approved a 50% tariff hike for telecom operators, citing rising operational costs and economic challenges.

Telephone subscribers in Nigeria will face higher costs for data and airtime, following the Nigerian Communications Commission’s (NCC) approval on Monday of a 50% tariff increase for telecom operators in the nation.

In a statement, Reuben Muoka, the spokesman for the regulator, explained that although some network operators requested over 100% increase in prices, the adjustment was set lower. This decision considered ongoing industry reforms aimed at enhancing sustainability.

The regulator stated that the increase was in accordance with its authority under Section 108 of the Nigerian Communications Act, 2003 (NCA), which allows it to regulate and approve tariff rates and charges imposed by telecommunications operators.

“According to the statement, these adjustments will stay within the tariff bands outlined in the 2013 NCC Cost Study. As part of the Commission’s standard procedure for reviewing tariffs, each request will be assessed individually. Implementation will follow closely with the newly issued NCC Guidance on Tariff Simplification for 2024.”

Since 2013, tariff rates have stayed unchanged even though telecom operators are facing rising operational costs.

The approved change aims to bridge the substantial gap between operational costs and current tariffs, while ensuring that service delivery to consumers remains unaffected.

These changes will enable operators to keep investing in infrastructure and innovation, ultimately benefiting consumers by delivering improved services and connectivity, such as better network quality, enhanced customer service, and broader coverage.

The NCC acknowledged the financial challenges confronting Nigerian households and businesses, expressing understanding of how tariff changes affect them.

“In pursuit of this goal, the Commission requires operators to implement these adjustments transparently and in a way that is equitable for consumers. Additionally, operators must educate and inform the public about the new rates while showcasing tangible improvements in service delivery,” stated the regulator.

As of December 2023, Nigeria’s official regulatory data indicates there are over 224 million subscribers in the country. MTN leads with more than 87 million subscribers, capturing a market share of 38.79%, which is the largest among licensed Mobile Network Operators (MNOs) in Nigeria. Both Globacom and Airtel each have around 61 million subscribers, while 9mobile has approximately 13.9 million users.