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.

Acknowledging the financial limitations faced by operators, including high costs of operations, the FCCPC stressed that consumer interests remain non-negotiable. 

According to the Commission, the NCC’s decision to approve a 50% tariff adjustment—lower than the initial 100% proposed by operators—was a deliberate effort to balance industry sustainability with consumer protection.

The NCC has also mandated greater transparency in telecoms. Service providers are now required to present clear and straightforward tariff details, free of hidden charges, to help consumers make informed decisions. This includes disclosing costs, validity periods, and all plan inclusions in a standardised format.

The FCCPC noted the long-standing issues of consumers, such as dropped calls, network congestion, inconsistent internet speeds, and poor customer service, which it says must be resolved to justify the tariff increase. “Consumers have consistently expressed the desire for measurable improvements in the quality of service before any tariff increases are implemented,” the statement noted.

A recent Memorandum of Understanding (MoU) between the FCCPC and NCC reveals both parties’ focus on safeguarding consumer interests while promoting fair competition in the telecom sector. 

This partnership will oversee the implementation of the tariff adjustment to prevent exploitative practices and ensure that increased revenues are invested in infrastructure and service delivery improvements.

The FCCPC further stated that telecom operators must clearly communicate the reasons for the tariff adjustment and how it will enhance service quality. “It is non-negotiable that telecom operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment.”

The Commission urged consumers to report any inadequacies through official channels for prompt resolution and assured the public that it would closely monitor the situation to ensure compliance with regulatory standards.