Telecom subscribers, FG heading for collision as NCC approves 50% tariff  hike

Telecom subscribers, FG heading for collision as NCC approves 50% tariff  hike

The Nigerian Communications Commission (NCC) on Monday announced a 50 per cent increase in tariff of services rendered by telecommunications companies (telcos) including calls and data use.
This is contained in a statement issued on Monday by the commission’s Director, Public Affairs, Reuben Muoka.

But the subscribers, under the umbrella body of Association of Telephone, Cable TV and Internet Subscribers of Nigeria (ATCIS-Nigeria) said the government had no power to fix prices in a liberalised market.
The NCC said the approval was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.
The telecos had asked for approval for 100 percent increase owing to what they called unbearable cost of operation.
The regulator concurred the increase in tariff was in response to prevailing market conditions.
“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” the commission said.
It further stated, “These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews.
“It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators.
“The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.”

The ATCIS-Nigeria said the Federal Government should not fix prices in a liberalised market.

The body, in a statement by its National Chairman, Sina Bilesanmi, said tariff hike was not one of the issues agreed at the last meeting with the regulator in Abuja.

Bilesanmi described telecoms sector pricing as a delicate area, and that the NCC should employ consultants to do data-based empirical cost analysis.

He said, “At the end of the meetings, we were expected to communicate an equilibrium price (a fair price agreeable to all) to the NCC for final approval,” adding that “any tariff hike will do more harm than good to the subscribers at a time they are struggling to cope.”