Nigeria’s telecom sector, which serves over 224 million subscribers, is vital to the country’s economy and connectivity has approved a 50% tariff increase for data and airtime.
The big picture
- The Nigerian Communications Commission (NCC) approved the price hike on Monday, marking the first tariff adjustment since 2013.
- Telecom operators, including MTN, Globacom, and Airtel, had lobbied for the change, citing rising operational costs fueled by inflation, taxes, and currency volatility.
- The NCC noted that some operators requested over a 100% increase, but the regulator settled on 50% after considering ongoing reforms aimed at sustainability.
Driving the news
- The adjustment is based on the NCC’s authority under Section 108 of the Nigerian Communications Act, 2003, which empowers the Commission to regulate and approve tariff rates.
- Operators are required to implement the new rates transparently and adhere to the NCC’s 2024 Guidance on Tariff Simplification.
What they’re saying
- Reuben Muoka, NCC spokesman: “These adjustments will remain within tariff bands stipulated in the 2013 NCC Cost Study and will support operators’ ability to invest in infrastructure and innovation.”
- NCC: “The decision addresses the gap between operational costs and current tariffs while ensuring service delivery remains uncompromised.”
- Critics: Consumer advocates worry the hike could exacerbate the financial strain on Nigerians, especially low-income households.
By the numbers
- Subscribers: MTN leads with over 87 million subscribers (38.79% of the market), followed by Globacom and Airtel with 61 million each, and 9mobile with 13.9 million.
- Economic impact: The telecom sector contributes over 15% to Nigeria’s GDP and is critical for digital and economic inclusion.
Zoom out
- Tariff rates had been static for a decade, even as the costs of operation surged. The NCC emphasized that the new rates aim to strike a balance between affordability for consumers and sustainability for operators.
- Similar tariff adjustments could be seen in other African markets as operators grapple with economic challenges.
What’s next
- Telecom operators must educate consumers about the new rates and demonstrate measurable improvements, such as better network quality and expanded coverage.
- The NCC plans to periodically review the impact of the adjustment to ensure fairness and service quality.
Source: Channels TV
