Telecommunications companies in Nigeria are currently waiting for clear instructions from the Nigerian Communications Commission (NCC) on how to implement a controversial 50% increase in service charges, known as tariffs. The NCC is expected to release an official document that will serve as a guide, outlining the rules and conditions that need to be followed for this price increase.
Under the new rules, telecom companies can adjust their prices to fall within a range specified by the NCC, which was set in a study conducted back in 2013. This range allows prices to be between 6.40 Naira and 50 Naira. Stakeholders learned during a recent online meeting that the new prices should start taking effect in February.
Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria, explained that any changes to tariffs must follow specific regulations established by the Nigerian Communications Act of 2003. This means there is a formal process to ensure that any price adjustments are fair and well-managed. He likened it to the price of tomatoes, which can easily change based on supply and demand without strict rules. In contrast, telecom prices are closely monitored by the NCC. The upcoming guidelines will provide the necessary framework for companies to implement these price changes properly.
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For over ten years, telecom tariffs have largely remained the same, even as service providers have faced increasing expenses due to inflation, fluctuating currency exchange rates, and significant investments needed to meet the growing demands of customers. These challenges have put a lot of pressure on the telecommunications sector, which is crucial for Nigeria’s digital economy.
In response to the new tariff decision, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, pointed out that pricing changes are part of a structured regulatory process. He clarified that there are different pricing levels allowed, which the NCC has approved. When companies want to change their prices, they must follow established procedures and submit requests to the regulator.
Initially, telecom companies had asked for a 100% increase in tariffs to cope with their rising costs, but the NCC decided on a more moderate 50% increase instead.
Meanwhile, the National Association of Telecoms Subscribers has issued a warning to the NCC, demanding that the proposed 50% tariff hike be reduced to 10% by January 29, 2025. If the NCC does not comply, they plan to take legal action. The association also criticized the Nigerian Labour Congress (NLC) for planning protests against the hike, suggesting that the NLC should focus on issues that directly affect worker rights instead of getting involved in telecom pricing matters.
