What Telcos’ 50% Tariff Hike Means For Customers

The Nigeria Communication Commission (NCC) on Monday, 20 January announced that it has approved a 50 per cent increase in tariff for calls and SMS services rendered by telecoms network operators in the country.

In a statement on Monday, the NCC spokesperson, Reuben Muoka said the Commission granted the 50 per cent tariff hike after considering the prevailing economic realities in the country that has seen prices skyrocket to an all-time high. 

The tariff adjustment has certain implications in terms of an increase in the cost of calls, data, and SMS services.

Checks by Prime Business Africa revealed that with the new tariff increase, telecommunications subscribers will now spend ₦9.6 per minute against the previous ₦6.40 as floor price (minimum acceptable price). Also, the ceiling price (maximum acceptable price) of calls will be pushed to ₦75 from ₦50; the cost of SMS to ₦6 from ₦4; and the cost of 1GB of data to ₦431.25 from ₦287.5. The average price of calls will be ₦16.5/minute from ₦11.

This comes after a decade-long agitation for a tariff increase. Telecom companies had in recent items intensified their clamour for upward tariff adjustment, citing harsh economic realities posed by high Inflation,  high exchange rate due to naira devaluation, and the negative impact on their operations. They also mentioned some other factors that affect their expansion plans which made it imperative for an upward review of tariffs such as vandalism, theft, and insecurity among others.

The telecom operators had requested a 100 per cent increase but NCC approved 50 per cent saying that “The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”

The telecoms regulators explained that the tariff hike aims to address the gap between operational costs and current tariffs while ensuring that delivery of services to consumers is not compromised.

NATCOMS Vows to Challenge NCC’s 50% Tariff Hike in Court

Meanwhile, the National Association of Telecommunications Subscribers (NATCOMS) has said it would challenge the decision of the NCC in approving 50 per cent tariff hike by telecoms operators in court.

NATCOMS President, Mr Deolu Ogunbanjo, who made this known in an interview with News Agency of Nigeria on Monday, said the association was not carried along in the process.

He said the 50 per cent tariff hike would have a negative impact on individuals and businesses. According to him, it would lead to an increase in operational costs for businesses.

Ogunbanjo, who acknowledged the challenges faced  by the telecommunications industry suggested between a five and ten per cent marginal increase in tariff.