Telcos await NCC guidelines on 50% tariff hike

Telecommunications operators are awaiting detailed guidelines from the Nigerian Communications Commission to outline the specifics and framework required for implementing the controversial 50 per cent tariff hike.

The telecom regulator is expected to issue a ‘determination document,’ which serves as a blueprint to define the frameworks, terms, and conditions for implementing the approved tariff adjustments.

Under the new policy, telecom operators would be allowed to adjust prices within the tariff bands of N6.40 to N50, as established by the NCC’s 2013 Cost Study.

The implementation of the new tariff is slated to begin in February, according to stakeholders who were present at a virtual meeting last Monday when the hike was announced.

The President of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere, explained to The PUNCH that tariff adjustments are governed by law under the Nigerian Communications Act 2003, which mandates a structured process to ensure compliance and fairness.

He said the document will be instrumental in guiding operators and stakeholders on the implementation of the adjustments and the accompanying expectations.

“Unlike the price of tomatoes in a market, which can be increased or reduced without regulation, telecommunications tariffs are strictly regulated,” he said. “The determination document is the final step in this process, as it provides the necessary framework and guidelines for implementation.”

For more than a decade, tariff rates have remained unchanged, even as operators face rising costs fueled by inflation, exchange rate volatility, and substantial investments needed to meet increasing consumer demand.

These challenges have created significant financial strain, jeopardising the sustainability of the telecommunications sector—a vital pillar of Nigeria’s digital economy.

Although the adjustment aims to narrow the gap between rising operational costs and revenues, it falls short of addressing the deeper, systemic challenges affecting the industry, which contributes 14 per cent to Nigeria’s economy.

Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, clarified that the pricing adjustments are part of an established regulatory process.

“We don’t operate on one price list. There are different price bands—there is the lower and upper band. These are regulations approved by the NCC,” he said.

“Operators must approach the regulator based on their requests, and I believe that is what has been happening since the announcement was made. This is just the normal way we proceed when asking for a review of pricing.”

The telcos sought 100 per cent, citing the need to address rising operational costs in the industry, but the regulator settled for 50 percent.

Meanwhile, the National Association of Telecoms Subscribers on Friday issued an ultimatum to the regulator, demanding the reversal of the 50 per cent tariff hike to 10 per cent by Wednesday, January 29, 2025.  Should the NCC fail to give a positive response, subscribers intend to file a lawsuit.

It also criticised the Nigerian Labour Congress for its planned protest, urging the union to focus on its core mandate of protecting workers’ welfare.

The National President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria, Sina Bilesanmi, urged the NLC to focus on labour matters and refrain from interfering in telecommunications issues.