Telecom Tariff Hike In Nigeria: 7 Key Facts You Should Know

The NCC has approved a telecom tariff increase in Nigeria. Here are 7 key facts about the price adjustment, its impact, and what consumers should expect in terms of service quality and competition.

Introduction

The Nigerian Communications Commission (NCC) has approved an adjustment in telecom tariffs, allowing service providers to modify their pricing. This change has sparked discussions among consumers and industry stakeholders. Here’s everything you need to know about the latest telecom tariff review and its implications.

1. NCC Approves a 50% Tariff Adjustment

The NCC has granted telecom operators the right to increase their tariff rates by up to 50% within the limits of an existing price band set in 2013. However, operators are not obligated to implement the full 50% hike—they may opt for a smaller increase.

It’s important to note that Nigeria operates a liberalized telecom market, meaning competition will continue to play a role in regulating prices. Historically, competitive forces have driven prices lower, such as when call rates dropped below ₦50 per minute, and per-second billing was introduced. Similarly, as economic conditions improve, competition may help stabilize or even reduce tariffs in the future.

2. NCC’s Regulatory Power on Tariffs

The Nigerian Communications Act (NCA) of 2003, particularly Section 108, mandates that all telecom operators obtain approval from the NCC before implementing any tariff changes. This law prevents arbitrary pricing by telecom companies and ensures regulatory oversight on service charges.

3. First Tariff Adjustment in Over a Decade

The last time the NCC approved a tariff increase was in 2013—over 10 years ago. At that time, Nigeria’s inflation rate stood at 8.5%. Fast forward to today, inflation has skyrocketed to 34.8%, representing a nearly 300% rise. Given this economic shift, telecom operators argue that an adjustment is necessary to maintain service quality.

4. Rising Operational Costs in the Telecom Industry

The telecom industry is one of Nigeria’s largest consumers of diesel, spending approximately ₦40 billion per month to power over 30,000 cell towers nationwide. These towers require round-the-clock electricity to ensure seamless network coverage.

Additionally, telecoms depend heavily on foreign exchange (FX) for imported equipment, with no locally available alternatives. Back in 2013, both the dollar exchange rate and diesel prices were under ₦200. Today, both have exceeded ₦1,000, putting immense pressure on operational costs. No industry can maintain constant prices in the face of such drastic cost increases.

5. NCC Limits Tariff Hike Despite Higher Operator Requests

Telecom providers initially sought a 100% tariff increase, but the NCC approved only 50%. In exchange, the commission has pledged to strictly monitor service quality and enforce compliance.

To hold operators accountable, NCC has revised its regulations to impose heavier fines for poor service delivery. Consumers can now expect stricter enforcement against call drop issues, poor internet quality, and other service-related complaints.

6. Transparent Communication of New Tariff Plans

The NCC has mandated that telecom operators clearly disclose their new tariff structures. Under the “Tariff Simplification Guidance”, all charges must be transparent, with no hidden costs or misleading plans. This regulation ensures that consumers fully understand what they are paying for without unexpected deductions or confusing pricing models.

7. Telecom Operators Must Now Deliver Better Services

With increased tariffs come higher expectations. Leading telecom companies like MTN, Airtel, and 9Mobile have committed to investing in new infrastructure to enhance service quality. Now that they have more funds, there is no excuse for poor network performance.

Nigerians deserve better call quality, faster internet speeds, and improved network coverage. The NCC has also been urged to encourage greater competition within the industry, which will help keep prices reasonable and ensure consumers get value for their money.

Conclusion

The telecom tariff adjustment is a response to rising operational costs, inflation, and foreign exchange challenges. While a price hike may seem unfavorable to consumers, it is expected to improve service delivery in the long run. The NCC has assured the public that operators will be closely monitored and held accountable for maintaining high-quality services.

As Nigeria’s economic conditions evolve, competition and regulatory oversight will play a crucial role in shaping the future of telecom pricing. Stay informed, compare tariff plans, and choose the best options that suit your needs.