50% Increase in Telecom Tariffs Tackles Industry Challenges – Presidency

The presidency has defended the 50% hike in tariff approved for telecommunications operators by the Nigerian Communications Commission (NCC),

It argued that the.tariff hike was necessary to address the critical challenges in the sector.

The presidency, however, noted that the approval does not mean that the telecom operators must immediately increase their tariffs by 50%.

These were contained in a bulletin by the President Bola Ahmed Tinubu Media Centre titled: Fact vs Fiction — “Understanding the approved tariff adjustment by the NCC,” released on Monday.

The report read: “While some may view tariff adjustments with apprehension, it is important to understand the broader context.

“The telecom sector is a critical pillar of Nigeria’s economy, supporting millions of users and businesses that rely on uninterrupted connectivity for daily activities.

“Without a sustainable pricing model, the sector risks stagnation, with operators unable to maintain or upgrade infrastructure to meet increasing demands.

“By approving this modest adjustment, the NCC has ensured that operators can remain viable while creating room for innovation and improved service delivery.

“This development, however, is not just about pricing. The NCC has introduced strict regulatory measures to simplify tariff structures and eliminate exploitative billing practices that have plagued the industry in the past.

“For instance, operators who fail to meet their service obligations will now face stricter sanctions under updated Quality of Service regulations.

“This commitment to accountability ensures that customers receive value for their money while setting a new standard for transparency and fairness in the industry.

“It is equally important to highlight that this approval does not mean automatic increases in tariffs. Operators are still free to maintain their current rates if they find them sustainable.

“The NCC’s proactive approach to regulating this adjustment ensures that it is implemented in a way that benefits everyone—operators and consumers alike.

“This reform also has no connection to the ongoing discussions around tax reforms, dispelling any misconceptions that may arise.

“Furthermore, this adjustment takes aim at sharp practices that have often undermined consumer trust in the telecommunications industry.

“With clearer guidelines and tighter oversight, arbitrary pricing and substandard services will become things of the past.

“This is yet another reflection of President Tinubu’s administration’s commitment to fostering an economic environment where critical sectors like telecommunications thrive without compromising the well-being of Nigerians.”

By: Babajide Okeowo