NCC denies approving telcos’ latest tariff hike gambit

NCC headquarters, Abuja

NCC denies approving tariff hike, says “is fake news, spurious”

Reports that the Nigerian Communications Commission (NCC) has approved the new proposal by telecom operators for a 40 per cent hike in tariffs from January 2025 have been denied by the Commission.

The reports claimed that this will translate into N15.40 per minute for telephone calls and N5.60 for Short Message Service (SMS). It added that data bundles, 1GB data plan will cost a minimum of N1,400.

This threat of tariff hike raised concerns about the impact this will have on the telecom service consumers who are already overstretched by the increasing hardship in the country amid poor purchasing power of the citizens compounded by higher prices for basic commodities and services.

However, speaking to our correspondent, a source from the NCC said the purported reports about tariff increase “is fake news, spurious and the figment of the imagination of the author of the news.”

The sources said that NCC has a well-known procedure for price increases for telecoms services.

“However, the commission’s regulatory power, as contained in the 2003 NCC Act, does not permit it to do so until it has conducted wider consultation with industry stakeholders based on the “cost-based study,” which will provide the empirical validity for the recommendation. This is done to protect consumers’ interests.

This line of action, he added, will look into the current economic realities of the country based on the macroeconomic variables such as inflation and exchange rate. He stressed that the board of the NCC has a role to play in the matter after wider consultation before any action can be taken.

He assured that at the moment no such action has taken place and no such approval has been given by the commission for the purported hike in tariffs on telecoms services. He advised the public to ignore the report because it is untrue.

In the last couple of years telecom operators have mounted pressure on the commission for a tariff increase, which according to them is in consonance with the current operating business environment in Nigeria.

In October 2024, LEADERSHIP reported that the President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, acknowledged the concerns of the subscribers but stressed that for the industry to remain afloat, prices of subscription must increase judging by current realities.

He said this during the 93rd Telecom Consumer Parliament (TCP) in Abuja , with the theme “ Optimising Data Experience: Empowering Consumers through Awareness and Transparency in a Consumer-Centric Telecom Industry.”

He noted that the association would continue to work closely with the NCC, the government, and other partners to address aggravated challenges and enhance data affordability. He added that it has become incumbent on stakeholders to push for policies that enable better service delivery and infrastructure development.

He emphasised that for the gains of the last 22 years in the industry to be sustained, Nigerians will have to pay more for data. He said, “In essence, if the industry is not sustainable and we can’t do things better, the pains of not doing anything would be worse. We need to find a lasting solution and a long-term sustainable and manageable solution to this problem.

“I’m sorry to say prices will need to rise. But actions need to be taken in measured ways through sustainable conversations and partnerships with the government.”

– Leadership.

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