The Nigerian Communications Commission (NCC) has approved a 50% tariff increase for telecom operators, citing rising operational costs and inflation. While operators requested a higher increase, the NCC capped it at 50% and emphasized its commitment to monitoring service quality and ensuring transparency in tariff communication. The NCC expects operators to invest in improved infrastructure and service delivery with the additional revenue.
One. The NCC approval is for telecom operators to adjust their tariff prices by 50 percent within an already existing tariff band determined since 2013 — with a cap of 50 percent. That means they can increase up to 50 percent as a maximum but can choose to increase by a percentage less than 50 percent.
Two. Section 108 of the Nigerian Communications Act, 2003 spells out the ‘Tariff Rate Regulation’ power of the NCC, as follows: “Holders of individual licenses shall not impose any tariff or charges for the provision of any service until the Commission has approved such tariff rates and charges except as otherwise provided in this Part.”
Three. The last time the NCC exercised this regulatory function and approved a tariff increase in the telecoms sector was 2013 – over a decade ago. The inflation rate in 2013 was 8.5 percent. The inflation rate today is 34.80 percent. That is about a 300 percent increase!Four. The telecommunications sector is one of the biggest consumers of diesel in Nigeria, accounting for diesel spending of about N40 billion monthly.
Five. Telecoms operators requested approval for over a 100 percent increase, but the NCC approved only 50 percent. Upon approving this, the NCC has vowed to ensure strong monitoring of Quality of Service and full compliance by operators. So, in other words, the operators asked for an increase, in return, they will be held to account for any service lapses experienced by consumers in that time.
Six. Operators must also communicate the new rates in a simple and transparent manner; the NCC says it has given them a “Tariff Simplification Guidance” which in summary says that they must tell you everything about your tariff: no hidden charges or mago-mago plans that say one thing but mean another.Seven. To whom much is given, much is expected. Telecom operators have no choice but to improve their services.
TELECOMS NCC TARIFF INCREASE INFLATION SERVICE QUALITY
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NCC Approves 50% Tariff Increase for Telecom Operators in NigeriaThe Nigerian Communications Commission (NCC) has approved a 50% tariff adjustment for telecom operators, citing the need to address operational costs and ensure industry sustainability. The increase, capped at 50% of current tariffs, follows extensive consultations with stakeholders and aims to support infrastructure investment and service improvements.
Read more »
NCC Approves 50% Increase in Telecom TariffsThe Nigerian Communications Commission (NCC) has approved a 50% increase in telecommunications tariffs, aiming to bridge the gap between operational costs and current rates for telecom operators. The adjustment, while lower than the 100% requested by some operators, is intended to support infrastructure investment and service improvements for consumers.
Read more »
NCC Approves 50% Call Tariff Increase, Banditry, and Other Nigerian NewsThis news roundup covers various significant developments in Nigeria. The NCC approved a 50% increase in call tariffs, which could raise the average cost of calls to N16.5 per minute. Northern states are implementing the national livestock transformation plan to tackle the farmer-herder crisis. Meanwhile, subscribers are protesting the tariff hike and the death toll from a petrol tanker explosion in Niger state has risen to 98. The federal government is launching a pilot program for caesarean sections to address maternal mortality, and the EFCC has arraigned a former AMCON managing director for alleged fraud. Additionally, the federal government has re-awarded a section of the Abuja-Kaduna highway, and the Katsina state government has declared it will not negotiate with bandits.
Read more »
NCC Approves 50% Tariff Hike for Telecom Operators in NigeriaThe Nigerian Communications Commission (NCC) has approved a maximum 50% increase in tariff rates for telecommunications operators across the country. This decision aims to address the financial pressures faced by operators while ensuring sustained service delivery to consumers.
Read more »
NCC Approves 50% Tariff Increase for Nigerian Telecom OperatorsNigerian telecommunications companies (telcos) are facing rising operational costs due to factors like energy prices, inflation, and currency devaluation. Despite requests for a 100% tariff increase, the Nigerian Communications Commission (NCC) approved a maximum 50% adjustment within existing bands. This decision aims to balance operator needs with consumer affordability while ensuring the sector's long-term sustainability.
Read more »
NATCOMS to Sue NCC Over 50% Tariff HikeThe National Association of Telecoms Subscribers (NATCOMS) plans to sue the Nigerian Communications Commission (NCC) after the NCC approved a 50% increase in telecom tariffs. NATCOMS argues that the increase, despite understanding the challenges faced by the telecoms industry, is too high and will negatively impact subscribers. They propose a more moderate increase of 5-10% and suggest alternative funding options for operators, such as Initial Public Offerings (IPOs).
Read more »