Nigeria: Telcos Await NCC Guidelines for 50% Tariff Hike Implementation

Telecommunications operators in Nigeria are awaiting the Nigerian Communications Commission (NCC) to release detailed guidelines for implementing the recently announced 50% tariff hike. The NCC is expected to issue a “determination document,” a crucial framework outlining the terms and conditions for the approved tariff adjustments.

Under the new policy, telecom operators will adjust prices within the tariff bands of N6.40 to N50, as established by the NCC’s 2013 Cost Study. The implementation is scheduled to begin in February, following discussions in a virtual stakeholders’ meeting held last Monday.

Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria, highlighted that tariff adjustments must follow a structured process as mandated by the Nigerian Communications Act 2003. He noted, “Unlike the price of tomatoes in a market, which can be increased or reduced without regulation, telecommunications tariffs are strictly regulated. The determination document is the final step in this process, providing the framework for implementation.”

The industry has faced more than a decade of static tariff rates despite mounting operational costs driven by inflation, exchange rate instability, and significant investment needs to support growing consumer demand. These factors have strained the telecommunications sector, a cornerstone of Nigeria’s digital economy contributing 14% to the country’s GDP.

While the adjustment aims to address the gap between operational costs and revenues, it does not fully resolve the underlying systemic challenges impacting the sector’s sustainability.

Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, clarified that the tariff hike adheres to regulatory processes. “We don’t operate on one price list. There are different price bands—lower and upper—approved by the NCC. Operators must approach the regulator based on their requests, and this has been the standard procedure,” he said.

The telcos initially proposed a 100% tariff increase to offset rising costs but were granted a 50% hike by the NCC.

In response, the National Association of Telecoms Subscribers has issued an ultimatum to the NCC, demanding a reduction of the hike to 10% by Wednesday, January 29, 2025. The group has threatened legal action if their demands are not met.

Additionally, the association criticised the Nigerian Labour Congress (NLC) for its planned protests against the hike, urging the union to focus on workers’ welfare instead of telecom industry matters. Sina Bilesanmi, National President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria, echoed this sentiment, advising the NLC to prioritize labour issues over telecommunications concerns.

The industry now awaits the NCC’s determination document, which will set the course for implementing the tariff adjustments while navigating the tension between regulatory compliance, industry sustainability, and consumer expectations.