The Nigerian Communications Commission (NCC) has recently addressed concerns regarding tariffs in the country’s communications sector. The document, titled “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector,” took effect on July 29, 2024. Following its release, there were reports suggesting that the NCC had approved tariff hikes. However, the NCC clarified via a post on X (formerly Twitter) that it has neither approved any new telecom tariff plans nor hikes, advising the public to disregard the misinformation.
NCC’s Official Stance
NCC CEO Aminu Maida, in response to one of the erroneous reports, categorically stated, “Like the others, this is FAKE NEWS! The Commission has neither approved telecom tariff plans nor hike as this report claims.” This assertion aims to clear up any confusion and reassure consumers about the NCC’s position on telecom tariffs.
Simplification and Transparency of Tariffs
The NCC’s primary focus, as detailed in their guidance document, is to ensure that all telecom operators simplify their current tariff plans in a transparent and fair manner for consumers. The directive mandates that operators provide subscribers with complete information, including full disclosure of all tariff components and conditions. This requirement is designed to help subscribers make informed decisions by understanding the characteristics of each plan and bundle.
The NCC has emphasized the importance of consumer education and transparency. Operators are required to submit migration plans to ensure a smooth transition to new tariffs and maintain service quality. Furthermore, promotional offers must be approved by the commission, offered as standalone products with clear terms, and accompanied by comprehensive reports.
Industry Response and Context
In April 2024, telcos in Nigeria considered hiking the prices for calls and data. The Association of Licenced Telecom Operators of Nigeria (ALTON) noted that they hadn’t raised prices in over a decade. However, the NCC suggested that telecom companies should share their infrastructure to save costs and improve services rather than increase tariffs.
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Despite this, operators like MTN are considering regulated tariff increases as part of their strategy to achieve faster revenue growth and margin repair. MTN Nigeria reported significant net forex losses, amounting to ₦656.4 billion in Q1 2024 and ₦887.7 billion in H1 2024. The company stated that it is collaborating with authorities on tariff adjustments to address challenging operating conditions. In its recent H1 report, MTN highlighted progress in improving its capital position, including implementing regulated tariff increases and reducing USD exposure.
Conclusion
The NCC’s latest guidance emphasizes transparency and consumer protection, aiming to simplify tariff plans and ensure that consumers are well-informed. While telcos face financial pressures and are exploring tariff adjustments, the NCC remains committed to preventing unauthorized hikes and promoting fair practices in the industry. The ongoing collaboration between telecom operators and the NCC is crucial for addressing the sector’s challenges and ensuring sustainable growth.
