Reasons The NCC Ordered 10% Reversal of Telcos Tariff Hike
Following the complaints of subscribers, the Nigerian Communications Communications (NCC) in a statement rejected the 10% tariff hike in the prices of voice calls and data services of telecom operators in the country. Although, the move by these operators was in line with the mandate of the commission as provided by the Nigerian Communications Act, 2003, and other extant Regulations and Guidelines, as this was within the provisions of the existing price floor and price cap as determined for the industry.
Telecom operator, Airtel increased its monthly bundle data plan to N1,100 for 1.5GB monthly data; N1200 for 2GB monthly data; N1,500 for 3GB monthly data; N2,200 for 4.5GB monthly data; N2,500 for 6GB monthly data; N3,300 for 10GB monthly data; N4,400 for 11GB monthly data; N5,500 for 20GB monthly data. While another operator in the country, MTN increased its monthly bundle data plan to N1,100 for 1.5GB monthly data; N1,200 for 2GB monthly data; N1,500 for 3GB monthly data; N2,200 for 4.5GB monthly data; N2,500 for 6GB monthly data; N3,500 for 12GB; N5500 for 20GB monthly data; N6,000 for 25GB monthly data.
In a statement signed by the Director, Public Affairs, Reuben Muoka noted that “even though the tariff adjustment was proposed and provisionally approved by the management, pending the final approval of the Board of the Commission, in the end, it did not have the approval of the Board of the Commission. As a result, it is reversed.”
“The decision was also taken after a critical and realistic review and analysis of the operational environment and the current business climate in Nigeria, as it affects all sectors of the economy.”
According to NCC, the Minister of Communications and Digital Economy, Dr. Isa Ibrahim Pantami maintained that his priority was to protect the citizens and ensure justice to all stakeholders involved.
Noting that there is an increase in the cost of production, the minister added that the suspension of the proposed five per cent excise duty was as well geared towards a conducive telecom business environment as well as subscribers being exempt from the burden.
“This was also why he obtained the approval of President Muhammadu Buhari for the suspension of the proposed five per cent excise duty in order to maintain a conducive enabling environment for the telecom operators.”
Ease of Telecom operations in Nigeria after suspension of proposed 5% excise duty
“In view of the above, the Commission, through a letter sent on the 12th of October 2022, has already directed the affected Mobile Network Operators (MNOs) to reverse the upward tariff adjustment.”
“The Commission will carry out further consultations with all industry stakeholders on the best approaches that will protect and uphold the interest of both the consumers and the service providers.”
The statement further reads that the Commission will establish transparent processes and procedures for rate determination with wide industry consultation. To this effect, price floors and price caps for data and voice services are benchmarked, regularly reviewed, and determined from time to time. It will also adopt international standards to ensure efficient pricing mechanisms for the telecommunications industry in Nigeria.