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The Nigerian Communications Commission (NCC) has reportedly approved a tariff hike for the telecom industry, according to various media outlets. However, the telecoms regulator has yet to issue an official statement on the matter. Senior officials from the NCC informed IT Edge News.Africa that the commission will soon clarify its stance.
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Reports refer to a new pricing rules document titled ‘Guidance on The Simplification of Tariffs in the Nigerian Communications Sector,’ signed by NCC Executive Vice Chairman, Dr. Aminu Maida. This new tariff plan, set to be operational from July 29, 2024, aims to simplify the pricing of services across Nigeria’s telecoms industry.
Document outlines pricing guidelines for services
The document outlines pricing guidelines for services in a market with 219,304,281 phone lines, 164,368,292 internet subscriptions, and 94,364,751 broadband connections as of Q1 2024. It includes stricter pricing rules for tariff plans, add-ons, bundles, bonuses, promotions, top-ups, and other elements providing access to voice, data, SMS, and other services.
Under these rules, a tariff plan is defined as “a structured pricing scheme that outlines the charges and conditions under which telecommunications services are provided to subscribers.”
It mandates that “every subscriber must be on a tariff plan, and no subscriber can be on more than one tariff plan at a time.”
Some subscribers might not notice significant price changes if they are minimal or applied gradually, said one subscriber in Abuja.
Telecommunications operators like MTN Nigeria, Airtel, and Globacom have advocated for a tariff hike, citing inflation and unstable foreign exchange as challenges.
However, the Federal Government has resisted, urging telcos to explore innovative solutions instead of raising prices.
MTN Nigeria recorded substantial losses last year, attributing them to Nigeria’s volatile foreign exchange, rising energy costs, and other expenses.
Market forces to determine pricing – ALTON
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON) stressed the need for operators to price their services appropriately to ensure industry sustainability.
“For us to have a sustainable industry, in the face of the challenges that we face, the operators must be allowed to price right. The government has to do something consciously and deliberately to address the telecom sector …. We must allow market forces to determine pricing and not by regulating pricing,” he told IT Edge News.Africa in a recent interview.
Both ALTON and the Association of Telecommunication Companies of Nigeria (ATCON) have urged the government to address these issues to prevent industry collapse.
Tony Izuagbe Emoekpere, President of ATCON, and Adebayo recently warned that the government’s inaction could impede sector progress and hinder development.
