The Nigerian Communications Commission (NCC) has approved a 50% increase in tariffs for telecom operators, marking the first adjustment in over a decade. This decision comes in response to escalating operational costs and aims to ensure the sustainability of the telecommunications industry.

Telecom operators had initially requested a 100% tariff hike; however, the NCC settled on a 50% increase to balance industry needs with consumer affordability.

The Commission emphasized that the new tariffs would adhere to the limits outlined in its 2013 Cost Study and would be implemented in strict accordance with the NCC Guidance on Tariff Simplification, 2024.

Reuben Muoka, the NCC’s Director of Public Affairs, stated, “The adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”

This tariff adjustment is intended to bridge the gap between rising operational expenses and existing service rates, enabling operators to continue investing in infrastructure and innovation. The NCC assured consumers that the increase would lead to improved services, including better network quality, enhanced customer service, and broader coverage.

Recognizing the financial pressures on Nigerian households and businesses, the NCC has mandated that operators implement the new rates transparently and educate consumers about the changes. Operators are also required to demonstrate measurable improvements in service delivery as part of the adjustments.

This development follows a period of economic challenges in Nigeria, including a sharp rise in inflation due to the devaluation of the naira and subsidy cuts in 2023. While inflation began to ease in mid-2024, subsequent price hikes reignited inflationary pressures, impacting various sectors, including telecommunications.

As of December 2023, Nigeria had over 224 million telecom subscribers, with major operators like MTN, Globacom, Airtel, and 9mobile serving the vast majority of users. The approved tariff increase is expected to have widespread implications, affecting both consumers and the broader economy.

The NCC’s decision underscores the delicate balance regulators must maintain between ensuring industry viability and protecting consumer interests. As the new tariffs come into effect, stakeholders will be closely monitoring the impact on service quality and accessibility across Nigeria.