Nigeria’s telecommunications landscape is set for a significant shift as the Nigerian Communications Commission (NCC) approved a 50% increase in tariffs for voice calls and data services, marking the first major price adjustment since 2013. The regulatory body’s decision comes amid mounting pressure from network operators who had initially sought increases exceeding 100%.
Commission spokesman Reuben Muoka announced the approval Monday, emphasizing that the decision was influenced by ongoing industry reforms aimed at ensuring sustainability in the telecommunications sector. The price adjustment will affect over 224 million subscribers across all major networks, including MTN, Globacom, Airtel, and 9mobile.
The regulatory approval arrives just days after Communications Minister Bosun Tijani’s public statement suggesting that any potential tariff increase would be capped at 60% of current rates. The NCC’s decision appears to have found middle ground between the minister’s ceiling and industry demands, settling on a 50% increment.
MTN Nigeria, the country’s largest network operator with over 87 million subscribers and 38.79% market share, along with Globacom and Airtel, each serving approximately 61 million users, will implement these new rates under strict regulatory oversight. 9mobile, with its 13.9 million subscribers, will also adjust its pricing structure accordingly.
The Commission justified the increase by pointing to static tariff rates since 2013, despite escalating operational costs faced by telecommunications companies. The adjustment was approved under Section 108 of the Nigerian Communications Act, 2003 (NCA), which empowers the NCC to regulate and approve tariff rates and charges by telecommunications operators.
To ensure consumer protection and service improvement, the NCC has mandated that operators implement these adjustments transparently and fairly. The new pricing structure will align with the recently issued NCC Guidance on Tariff Simplification, 2024, and operators must demonstrate measurable improvements in service delivery to justify the increased rates.
The regulatory body has emphasized that all tariff adjustments will remain within the bands stipulated in the 2013 NCC Cost Study, with individual requests from operators being reviewed on a case-by-case basis. This approach aims to maintain a balance between operator sustainability and consumer affordability.
Acknowledging the potential impact on Nigerian households and businesses, particularly during challenging economic times, the NCC has required operators to launch comprehensive public education campaigns about the new rates. These campaigns must clearly communicate the pricing changes while highlighting the expected improvements in service quality that subscribers should anticipate.
The approved increase is expected to support infrastructure development and innovation within the sector. The NCC maintains that the additional revenue will enable operators to invest in network quality enhancement, improved customer service, and expanded coverage across the country. This comes at a crucial time when digital connectivity has become increasingly essential for business, education, and daily life in Nigeria.
Industry analysts suggest that while the price increase may initially strain consumer budgets, the potential for improved service quality and network reliability could justify the adjustment. The telecommunications sector has faced numerous challenges in recent years, including rising operational costs, currency fluctuations, and the need for continuous infrastructure upgrades to meet growing demand for data services.
The implementation of these new tariffs represents a delicate balance between ensuring the telecommunications industry’s sustainability and maintaining affordability for consumers. The NCC’s decision reflects an attempt to address the sector’s economic challenges while considering the broader impact on Nigerian society.
As the new tariff structure rolls out, the telecommunications industry’s response and its ability to deliver on promised service improvements will be closely monitored by both regulators and consumers. The success of this adjustment will likely be measured not just in terms of operator profitability but also in tangible improvements to service quality and network coverage across Nigeria.