Presidency defends 50% tariff hike approval, says price increase not automatic 

It, however, noted that the approval does not mean that the telecom operators must immediately increase their tariffs by 50%.

“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 President Bola Ahmed Tinubu Media Centre, stated in a statement released on Monday.

While describing the approval as an important step aimed at addressing critical challenges in the telecommunications sector, the Centre noted that the telecom industry in Nigeria had operated under static price mechanisms for over a decade as prices have remained unchanged since 2013, despite significant increases in the cost of operations.

“This has placed immense strain on service providers, who are tasked with maintaining infrastructure and ensuring quality service delivery.  

“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,” the Centre stated.

The Centre noted that while many Nigerians may view tariff adjustments with apprehension, they need to understand the critical role of the telecom sector in the economy.

It added that by approving this ‘moderate’ adjustment, the NCC has ensured that operators can remain viable while creating room for innovation a improved service delivery.

Beyond the tariff hike approval, the Centre noted that the NCC has also introduced strict regulatory measures to simplify tariff structures and eliminate exploitative billing practices that have plagued the industry in the past.

“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. 

“The NCC’s proactive approach to regulating the adjustment ensures that it is implemented in a way that benefits everyone-operators and consumers alike,” it added.

The NCC had on January 20 announced that it had approved a 50% tariff adjustment for telecom operators, citing rising operational costs and the need to sustain the industry.