Telecommunications operators are currently awaiting detailed guidelines from the Nigerian Communications Commission to clarify the specifics and framework for implementing the controversial 50% tariff hike.
The telecom regulator is expected to release a ‘determination document’ that will outline the necessary frameworks, terms, and conditions for the implementation of the approved tariff adjustments, according The Punch.
Under the new policy, telecom operators will be permitted to adjust their prices within the tariff bands ranging from N6.40 to N50, as outlined in the NCC’s 2013 Cost Study.
The implementation of the new tariff is set to begin in February, according to stakeholders who attended a virtual meeting last Monday when the hike was officially announced.
The President of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere, stated that tariff adjustments are regulated by law under the Nigerian Communications Act of 2003, which mandates a structured process to ensure both compliance and fairness in the implementation of changes.
He said the document will play a crucial role in guiding operators and stakeholders on how to implement the adjustments, as well as outlining the expectations associated with the changes.
“Unlike the price of tomatoes in a market, which can be increased or reduced without regulation, telecommunications tariffs are strictly regulated,” he said. “The determination document is the final step in this process, as it provides the necessary framework and guidelines for implementation.”
For over a decade, tariff rates have stayed the same, despite operators grappling with rising costs driven by inflation, exchange rate fluctuations, and the large investments required to meet growing consumer demand.
These challenges have placed considerable financial pressure on the industry, threatening the sustainability of Nigeria’s telecommunications sector, which is a crucial part of the nation’s digital economy.
While the adjustment aims to close the gap between rising operational costs and revenues, it doesn’t fully address the deeper, systemic challenges facing the industry, which contributes 14 percent to Nigeria’s economy.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, clarified that the pricing adjustments are part of a formal regulatory process.
“We don’t operate on one price list. There are different price bands—there is the lower and upper band. These are regulations approved by the NCC,” he said.
“Operators must approach the regulator based on their requests, and I believe that is what has been happening since the announcement was made. This is just the normal way we proceed when asking for a review of pricing.”
The telecom operators requested a 100 per cent increase, citing the need to address rising operational costs within the industry, but the regulator ultimately approved a 50 percent hike.
