Telecom Operators Brace for NCC Guidelines on Controversial Tariff Hike
Telecommunications operators in Nigeria are awaiting a critical document from the Nigerian Communications Commission (NCC) to establish the framework for implementing a contentious 50 per cent tariff hike.
The long-anticipated “determination document” is expected to outline the terms, conditions, and guidelines for the tariff adjustment, which aims to address escalating operational costs in the industry. The NCC, tasked with regulating the telecom sector, has maintained that the adjustments will remain within the tariff bands of N6.40 to N50 established by its 2013 Cost Study.
The rollout of the new tariff structure is scheduled for February 2025, according to stakeholders who attended a virtual meeting last Monday where the hike was formally announced.
Regulated Tariffs and Rising Costs
Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria, emphasised the importance of a structured process in implementing the tariff changes, citing provisions in the Nigerian Communications Act 2003.
“Unlike the price of tomatoes in a market, which can be increased or reduced without regulation, telecommunications tariffs are strictly regulated,” Emoekpere said. “The determination document will serve as a roadmap for operators and stakeholders, providing clarity and ensuring compliance.”
The tariff hike comes after more than a decade of static pricing, despite surging inflation, volatile exchange rates, and rising consumer demand. Operators argue that these factors have created unsustainable financial pressures, jeopardising the telecom sector, which contributes 14 per cent to Nigeria’s GDP and underpins the country’s digital economy.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, further explained the NCC’s regulatory approach: “We don’t operate on one price list. There are different price bands—lower and upper—which are regulated by the NCC. Operators must approach the regulator to request reviews, and this process has been followed for the current adjustments.”
Initially, operators had sought a 100 per cent tariff increase to offset skyrocketing operational expenses. However, the NCC approved only a 50 per cent adjustment, citing the need to balance industry sustainability with consumer affordability.
Subscriber Backlash and Legal Threats
The tariff hike has sparked outrage among consumer advocacy groups, with the National Association of Telecoms Subscribers (NATCOMS) issuing a stern ultimatum to the NCC. On Friday, the association demanded the regulator scale back the increase to 10 per cent by January 29, 2025, threatening legal action if their demands are not met.
Sina Bilesanmi, National President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria, criticised both the NCC and the Nigerian Labour Congress (NLC). While chastising the regulator for failing to protect consumers, Bilesanmi urged the NLC to focus on workers’ welfare instead of intervening in telecom sector disputes.
“The NLC should stick to its mandate of safeguarding workers’ rights and refrain from meddling in telecommunications issues,” Bilesanmi said.
The Road Ahead
While the NCC has yet to release the definitive determination document, stakeholders agree that the tariff adjustment, though unpopular, is a reflection of the industry’s dire economic realities. However, critics argue that the move fails to address systemic issues, such as infrastructure deficits and high operational costs, which continue to plague the sector.
The coming weeks are likely to see increased tension among operators, regulators, and subscribers, as the February rollout deadline looms. For now, the 50 per cent hike represents a temporary fix to a problem that demands long-term solutions. Whether the NCC’s guidelines can strike a balance between sustaining the industry and protecting consumer interests remains to be seen.
