Nigerian telephone subscribers will face higher costs for data and airtime following the Nigerian Communications Commission’s (NCC) approval of a 50% tariff increase for telecom operators, announced on Monday.
In a statement, NCC spokesman Reuben Muoka explained that the price adjustment, though lower than the “over 100%” increase requested by some network operators, was determined after considering ongoing industry reforms that are expected to positively impact sustainability.
The NCC noted that the tariff hike was in line with its authority under Section 108 of the Nigerian Communications Act, 2003 (NCA), which empowers the Commission to regulate and approve pricing structures for telecom operators.
“These adjustments will remain within the tariff bands outlined in the 2013 NCC Cost Study, with each request being reviewed on a case-by-case basis, in accordance with the Commission’s standard practice for tariff reviews,” the statement said. “The adjustments will also adhere strictly to the newly issued NCC Guidance on Tariff Simplification, 2024.”
The NCC pointed out that tariff rates have remained unchanged since 2013, despite rising operational costs for telecom operators. The approved adjustment seeks to bridge the growing gap between operational expenses and existing tariff rates, while ensuring that service delivery to consumers is not compromised.
“This adjustment will help telecom operators continue investing in infrastructure and innovation, ultimately leading to improved services for consumers, including enhanced network quality, better customer service, and expanded coverage,” the regulator stated.
Acknowledging the financial strain faced by Nigerian households and businesses, the NCC expressed empathy for the potential impact of the tariff hike. The Commission has directed operators to implement the new rates transparently, ensuring fairness to consumers. Operators are also required to inform the public about the new pricing and demonstrate tangible improvements in service delivery.
As of December 2023, Nigeria had over 224 million telecom subscribers, according to NCC data. MTN leads the market with more than 87 million subscribers, accounting for 38.79% of the total market share. Globacom and Airtel each have 61 million subscribers, while 9mobile has 13.9 million users.
