Telcos Await NCC Guidelines on Controversial 50% Tariff Hike

Telecommunications operators in Nigeria are on edge as they await the Nigerian Communications Commission (NCC) to release detailed guidelines regarding the recently approved 50% tariff hike. The commission is expected to issue a ‘determination document,’ which will outline the framework, terms, and conditions for the implementation of the price adjustment.

The new tariff structure, which will allow telecom operators to adjust prices within the tariff bands ranging from N6.40 to N50—based on the NCC’s 2013 Cost Study—will take effect in February, according to stakeholders who participated in a virtual meeting held last Monday when the hike was announced.

Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), explained that tariff adjustments are regulated by law under the Nigerian Communications Act 2003. He emphasized that the determination document is critical for ensuring that the process is conducted fairly and in compliance with regulatory standards. “Telecommunications tariffs are strictly regulated, unlike the price of tomatoes, which can fluctuate freely in the market,” he said. “This document will provide the necessary guidelines and framework for the implementation of the adjustments.”

For over a decade, the sector has faced stagnant tariff rates, while inflation, exchange rate volatility, and substantial infrastructure investments have significantly raised operational costs for telecom operators. These financial pressures threaten the long-term sustainability of Nigeria’s telecommunications industry, which plays a crucial role in the country’s digital economy.

While the tariff adjustment is seen as necessary to bridge the gap between rising costs and revenues, many argue it fails to address deeper structural challenges in the sector. The telecommunications industry currently contributes 14% to Nigeria’s GDP.

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Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), clarified that the tariff adjustment is part of an established regulatory process. He noted that there are multiple pricing bands, both lower and upper, that operators must comply with, as approved by the NCC. “This is a regular procedure whenever operators request a review of pricing,” he said.

Although telecom operators initially sought a 100% tariff hike to cover rising operational costs, the NCC approved a 50% increase.

In response to the tariff hike, the National Association of Telecoms Subscribers (NATCOMS) has issued a strong ultimatum, demanding that the NCC reverse the 50% increase to just 10% by January 29, 2025. The consumer group has threatened to take legal action should the NCC fail to address their concerns.

Additionally, NATCOMS criticized the Nigerian Labour Congress (NLC) for planning protests against the tariff hike, urging the union to focus on its primary mandate of safeguarding workers’ welfare. Sina Bilesanmi, National President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS), also called on the NLC to refrain from interfering in telecommunications-related matters.

As the February implementation date looms, both telecom operators and consumers await the NCC’s final guidelines on the tariff hike, with the potential for further legal and regulatory battles on the horizon.