Nigerian mobile subscribers are poised to encounter heightened expenses for data and call services as the Nigerian Communications Commission (NCC) has sanctioned a 50% hike in telecom tariffs. This decision follows assurances from Minister of Communications, Bosun Tijani, that tariff increments would remain capped at 60% of existing rates.
In an official communiqué, Reuben Muoka, spokesperson for the regulatory authority, underscored that the adjustment, although markedly lower than the over 100% increment sought by certain telecom operators, was formulated with cognizance of prevailing reforms aimed at sustaining industry viability.
The NCC justified its decision by invoking powers vested under Section 108 of the Nigerian Communications Act, 2003, which grants it the mandate to oversee and endorse tariff structures across the telecommunications sector.
“These revisions remain firmly within the pricing thresholds established in the 2013 NCC Cost Study, and individual requests will undergo meticulous scrutiny, adhering strictly to the 2024 NCC Guidance on Tariff Simplification,” the statement elucidated.
The Commission further emphasized that tariff rates had stagnated since 2013, despite escalating operational expenditures borne by network providers. It posited that the approved increment seeks to bridge the widening disparity between service costs and prevailing tariffs while safeguarding the uninterrupted delivery of quality services to end-users.
The regulatory authority articulated that the adjustments are strategically designed to bolster operators’ capacity to funnel investments into technological infrastructure and innovation. This recalibration, it asserted, would culminate in enhanced service offerings, superior network performance, extended coverage reach, and improved customer engagement mechanisms.
Acknowledging the economic strains faced by Nigerian households and enterprises, the NCC assured that the tariff revisions would be executed transparently and equitably. Furthermore, it mandated operators to comprehensively enlighten subscribers on the impending changes, demonstrating tangible service enhancements as a quid pro quo for the revised rates.
As of December 2023, official data from the NCC reveals that Nigeria hosts over 224 million active telecom subscribers. MTN Nigeria leads the pack, commanding a substantial 38.79% market share with over 87 million subscribers. Globacom and Airtel trail with an equivalent 61 million users each, while 9mobile accounts for 13.9 million subscribers.
By orchestrating this tariff revision, the NCC seeks to strike a delicate balance between sustaining the financial health of telecom operators and alleviating the burdens of cost-conscious consumers amidst the backdrop of a progressively digitized economy.
