Following media reports that Mobile Network Operators (MNOs) in the country had unilaterally revised upward tariffs on voice and data services, the Nigerian Communications Commission (NCC) has directed the operators to immediately reverse the tariff adjustments.
The industry regulator, through a letter sent on the 12th of October 2022 to the MNOs stated that it would carry our 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.
Similarly, it assured its commitment to entrenching very transparent processes and procedures for rates determination in the industry, which are usually carried out with wide industry consultation for the purposes of setting price floors and price caps for data and voice services, regularly reviewed, and determined from time to time.
The NCC maintained that it would continue to abide by this time-tested process and international best practice to ensure efficient pricing mechanism for the telecommunications industry in Nigeria.
It noted that the media reports indicated that the MNOs were unilaterally implementing the recently approved 10 percent upward tariff adjustments for some voice and data, adding that the consideration for 10 per cent approval for tariff adjustments for different voice and data packages was in line with the mandates of the Commission as provided by the Nigerian Communications Act, 2003, and other extant Regulations and Guidelines, as this was within the provisions of existing price floor and price cap as determined for the industry.
The regulator further clarified: “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.
“Furthermore, 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 Honourable Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, has maintained that his priority is to protect the citizens and ensure justice to all stakeholders involved. As such, anything that will bring more hardship at this critical time will not be accepted.
“This was also why he obtained the approval of President Muhammadu Buhari for the suspension of the proposed 5 per cent excise duty, in order to maintain a conducive enabling environment for the telecom operators. Much as there is an increase in the cost of production, the provision of telecom services is still very profitable and it is necessary that the subscribers are not subjected to a hike in charges”, the commission added.
