January 28, 2025
The presidency has disclosed that the 50% hike in tariff approval granted to telecommunications operators by the Nigerian Communications Commission, NCC, does not mean that the telecom operators must immediately implement the increase .
However, it said the approval was necessary to keep the telecom industry viable and sustainable.
In a statement released on Monday, the President Bola Ahmed Tinubu Media Centre, stated that, “It is important to highlight that this approval does not mean automatic increases in tariffs. Operators are free to maintain their current rates if they find them sustainable,”
The statement, described the approval as an important step aimed at addressing critical challenges in the telecommunications sector, noting that the telecom industry in Nigeria had operated under static price mechanisms for over a decade, despite significant increases in operational cost.
“This has placed immense strain on service providers, who are tasked with maintaining infrastructure and ensuring quality service delivery.
The Center maintained that, “The NCC’s decision to allow a tariff adjustment of up to 50% within existing tariff bands was therefore necessary, though it is noteworthy that this adjustment remains significantly lower than the over 100% increase requested by the operators.
“This deliberate move strikes a balance between safeguarding the interests of service providers and protecting the economic well-being of Nigerian households and businesses,”
READ MORE; Organized Labour, Others React To NCC Approval Of 50% Tariff Hike For Telecom Operators
The Centre explained the critical role of the telecom sector in the economy and acknowledged that the telecom industry currently supports millions of individuals and businesses that rely on uninterrupted connectivity for daily activities, hence the need to sustain the sector.
The Centre, stated that without a sustainable pricing model, the sector risks stagnation, as operators would not be able to maintain or upgrade infrastructure to meet increasing demands by subscribers
Centre further emphasized that beyond the approval for increase in tariff, NCC has also introduced strict regulatory measures to simplify tariff structures and eliminate exploitative billing practices.
“For instance, operators who fail to meet their service obligations will now face stricter sanctions under updated Quality of Service regulations.
“This commitment to accountability ensures that customers receive value for their money while setting a new standard for transparency and fairness in the industry.
