NCC Approves 50% Tariff Increase Amid Rising Operational CostS

In response to mounting operational costs, the Nigerian Communications Commission (NCC) has approved a 50% increase in tariffs for telecommunications operators. This decision comes after operators requested a 100% hike; however, the NCC opted for a lower adjustment to balance industry sustainability with consumer affordability. 

This marks the first tariff revision since 2013, prompted by significant increases in operational expenses. The NCC aims to bridge the gap between costs and revenues while ensuring the quality of service remains uncompromised. The commission stated, “Tariff rates have remained unchanged since 2013, despite the increasing costs of operation… the increase was aimed at addressing the significant gap between operational costs and revenues while ensuring that service delivery is not compromised.” 

The Nigerian economy has faced inflationary pressures, particularly following the devaluation of the naira and subsidy cuts implemented in 2023. Although inflation began to ease in mid-2024, subsequent price hikes have reignited these pressures, affecting various sectors, including telecommunications. 

The NCC’s decision reflects a strategic effort to maintain the delicate balance between sustaining the telecommunications industry’s viability and protecting consumers from prohibitive costs. By approving a 50% tariff increase instead of the proposed 100%, the commission demonstrates its commitment to fostering a resilient and consumer-friendly telecommunications environment in Nigeria.