The Nigerian Presidency has responded to the recently approved 50% tariff increase for telecommunications operators, noting that the decision is necessary for ensuring the long-term viability of the sector.
The adjustment, authorised by the Nigerian Communications Commission (NCC), comes after over a decade of unchanged pricing in the industry, despite high inflation impacting the costs of operations.
The statement from President Bola Ahmed Tinubu Media Centre revealed that the approval, however, does not mandate an immediate increase in tariffs. “It is equally important to highlight that this approval does not mean automatic increases in tariffs. Operators are still free to maintain their current rates if they find them sustainable.”
The Presidency also noted that the approved tariff hike is well below the over 100% increase originally requested by service providers, pointing to the government’s goal to balance the needs of the telecom sector with the economic realities faced by Nigerian households and businesses.
The statement highlighted the role the telecom industry plays in Nigeria’s economy, supporting millions of individuals and businesses that depend on uninterrupted connectivity for daily activities.
“The telecom sector is a critical pillar of Nigeria’s economy, supporting millions of users and businesses that rely on uninterrupted connectivity for daily activities. Without a sustainable pricing model, the sector risks stagnation, with operators unable to maintain or upgrade infrastructure to meet increasing demands. By approving this modest adjustment, the NCC has ensured that operators can remain viable while creating room for innovation and improved service delivery.”
The Presidency pointed out that, without a sustainable pricing model, operators would face difficulties in maintaining and upgrading their infrastructure to meet growing demands. This, in turn, could lead to stagnation in the sector, sabotaging the quality of service.
It was also stressed that the NCC has introduced strict regulatory measures alongside the tariff adjustment, aimed at simplifying tariff structures and curbing exploitative billing practices.
New sanctions for operators who fail to meet service obligations will ensure greater accountability and improved customer service. The Presidency reaffirmed that these changes aim to ensure that both operators and consumers benefit from a more transparent and fair telecommunications environment.
The adjustment comes after the NCC announced the approval on January 20, due to high costs of operations and the need for the sector’s sustainability.
While the increase is seen as a necessary move to support telecom operators, the National Association of Telecommunications Subscribers (NATCOMS) has threatened to challenge the decision in court.
The association argues that the tariff hike was approved without sufficient consultation with key stakeholders, particularly the subscribers who will ultimately bear the cost.
Nonetheless, the Presidency remains firm on its stand, presenting the 50% tariff adjustment as an initiative for the telecom industry to thrive, meeting the demands of digitalisation.
