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The Nigerian Communications Commission (NCC) is said to have approved a tariff increase for the telecom sector, according to various media sources. However, the NCC has yet to release an official statement regarding this decision.
The reported tariff adjustment is detailed in a new pricing guidelines document titled ‘Guidance on The Simplification of Tariffs in the Nigerian Communications Sector,’ which has been signed by NCC Executive Vice Chairman, Dr. Aminu Maida. The new pricing structure, slated to take effect from July 29, 2024, aims to streamline the pricing of services across Nigeria’s telecom industry.
Document Outlines Pricing Guidelines
The document establishes comprehensive pricing guidelines for a telecom market comprising 219,304,281 phone lines, 164,368,292 internet subscriptions, and 94,364,751 broadband connections as of Q1 2024. It introduces stricter rules for tariff plans, add-ons, bundles, bonuses, promotions, top-ups, and other elements related to voice, data, SMS, and additional services.
Under the new rules, a tariff plan is defined as “a structured pricing scheme outlining the charges and conditions for telecommunications services provided to subscribers.” It stipulates that “every subscriber must be on a tariff plan, and no subscriber can be on more than one tariff plan at a time.”
Some subscribers, particularly in Abuja, may not notice significant price changes if the adjustments are minimal or implemented gradually.
Industry Perspectives on Tariff Adjustment
Telecommunications operators such as MTN Nigeria, Airtel, and Globacom have supported the tariff increase, citing inflation and fluctuating foreign exchange rates as major challenges.
Conversely, the Federal Government has resisted the hike, urging telecom operators to seek innovative solutions rather than increasing prices.
MTN Nigeria reported substantial losses last year, attributing them to Nigeria’s volatile foreign exchange, rising energy costs, and other operational expenses.
ALTON Advocates for Market-Driven Pricing
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), emphasized the importance of allowing operators to set appropriate prices to ensure the industry’s sustainability.
“To sustain the industry amidst the challenges we face, operators must be permitted to price their services correctly. The government needs to take deliberate action to support the telecom sector. We must let market forces determine pricing rather than imposing regulatory controls,” Adebayo told IT Edge News.Africa in a recent interview.
Both ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) have urged the government to address these issues to avoid potential industry collapse.
Tony Izuagbe Emoekpere, President of ATCON, and Adebayo recently warned that governmental inaction could impede sector progress and development.
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