NCC Approves Tariff Increase for Telecoms Amid Economic Hardship

The Nigerian Communications Commission (NCC) has approved a tariff increase for telecommunications services, a decision that adds to the financial burden on Nigerians already grappling with rising living costs.

In a statement on Monday, Reuben Muoka, NCC’s director of public affairs, said the approval is in line with the commission’s regulatory authority under Section 108 of the Nigerian Communications Act, 2003 (NCA). This move follows demands from telecommunications companies citing rising operational costs.

The announcement comes after Dr Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, days ago revealed plans for a tariff adjustment during a stakeholders’ meeting with Mobile Network Operators (MNOs) in Abuja. Tijani said the government aims to balance consumer protection with the financial sustainability of telecom operators, ensuring the industry’s long-term viability.

By today’s announcement, NCC has capped the tariff increase at 50 per cent after reviewing proposals submitted by telecom operators, The Cable reported. Speculations suggest call rates may rise from ₦11 to ₦15.40 per minute, SMS charges from ₦4 to ₦5.60, and 1GB of data could cost at least ₦1,400.

Telecom giants such as MTN Nigeria and Airtel had earlier proposed a 100 per cent hike, citing surging operational costs due to inflation, volatile exchange rates, and escalating energy prices. Operators have warned of potential service disruptions if tariffs remain unchanged.

This development coincides with the government’s proposal to impose a 5 per cent excise duty on telecommunications, gambling, and gaming services under the “Nigeria Tax Act” bill, submitted to the National Assembly on October 4, 2024. The bill seeks to apply excise duties to postpaid and prepaid telecom services regulated by the NCC, alongside other services.

The tariff hike comes at a time of economic hardship, with Nigerians struggling with the skyrocketing fuel prices, which have driven up transportation, food, and other essential costs. The additional financial burden of increased telecom tariffs is expected to exacerbate the already dire cost-of-living crisis for many citizens.

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