Telcos await NCC pointers on 50% tariff hike

Telecommunications operators are awaiting detailed pointers from the Nigerian Communications Fee to stipulate the specifics and framework required for implementing the controversial 50 per cent tariff hike.

The telecom regulator is predicted to problem a ‘dedication doc,’ which serves as a blueprint to outline the frameworks, phrases, and circumstances for implementing the accepted tariff changes.

Below the brand new coverage, telecom operators could be allowed to regulate costs throughout the tariff bands of N6.40 to N50, as established by the NCC’s 2013 Value Examine.

The implementation of the brand new tariff is slated to start in February, in keeping with stakeholders who had been current at a digital assembly final Monday when the hike was introduced.

The President of the Affiliation of Telecommunications Firms of Nigeria, Tony Emoekpere, defined to The PidomNigeria that tariff changes are ruled by legislation beneath the Nigerian Communications Act 2003, which mandates a structured course of to make sure compliance and equity.

He stated the doc will probably be instrumental in guiding operators and stakeholders on the implementation of the changes and the accompanying expectations.

“Not like the value of tomatoes in a market, which might be elevated or diminished with out regulation, telecommunications tariffs are strictly regulated,” he stated. “The dedication doc is the ultimate step on this course of, because it gives the required framework and pointers for implementation.”

For greater than a decade, tariff charges have remained unchanged, whilst operators face rising prices fueled by inflation, change fee volatility, and substantial investments wanted to fulfill rising client demand.

These challenges have created important monetary pressure, jeopardising the sustainability of the telecommunications sector—an important pillar of Nigeria’s digital financial system.

Though the adjustment goals to slim the hole between rising operational prices and revenues, it falls wanting addressing the deeper, systemic challenges affecting the trade, which contributes 14 per cent to Nigeria’s financial system.

Chairman of the Affiliation of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, clarified that the pricing changes are a part of a longtime regulatory course of.

“We don’t function on one value listing. There are completely different value bands—there may be the decrease and higher band. These are laws accepted by the NCC,” he stated.

“Operators should strategy the regulator primarily based on their requests, and I consider that’s what has been occurring for the reason that announcement was made. That is simply the conventional method we proceed when asking for a evaluate of pricing.”

The telcos sought 100 per cent, citing the necessity to handle rising operational prices within the trade, however the regulator settled for 50 p.c.

In the meantime, the Nationwide Affiliation of Telecoms Subscribers on Friday issued an ultimatum to the regulator, demanding the reversal of the 50 per cent tariff hike to 10 per cent by Wednesday, January 29, 2025.  Ought to the NCC fail to offer a optimistic response, subscribers intend to file a lawsuit.

It additionally criticised the Nigerian Labour Congress for its deliberate protest, urging the union to concentrate on its core mandate of defending employees’ welfare.

The Nationwide President of the Affiliation of Phone, Cable TV, and Web Subscribers of Nigeria, Sina Bilesanmi, urged the NLC to concentrate on labour issues and chorus from interfering in telecommunications points.