NCC dismisses claims of possible tariff hike by telcos, says they are baseless rumours

Following reports that telecommunications companies are set to increase their tariffs, the Nigerian Communications Commission (NCC) has dismissed the claims. The commission described the reports, which stated that the tariff hike would take effect in January 2025, as false and without grounds.

According to an NCC senior official on Sunday, the regulatory body operates under a transparent framework stipulated by the Nigerian Communications Act. The official then urged subscribers to disregard the misinformation.

The official added that the framework operates with strict compliance and there are procedures before any tariff adjustments are approved, which are also guided by various consultations.

“These rumours are baseless and misleading. The NCC is committed to protecting consumers and ensuring that any potential tariff changes are communicated clearly and transparently. Subscribers can rest assured that no tariff increase has been approved,” the official stated.

While reiterating its commitment to abiding with due process, NCC asked journalists and various stakeholders in the telecom industry to verify information before publication. It added that accurate information and verified reportage prevents public panic and the spread of rumours.

The Commission assured that it remains committed to ensuring stability within the telecommunications industry. It emphasized that updates on traffic and other related issues would be communicated through official platforms.

The Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) also addressed the rumours. The association’s National President, Mr. Sina Bilesanmi, said that clarification was sought directly from the NCC on December 24, 2024, concerning the tariff hike rumour.

“The NCC confirmed there is no truth to claims of call charges increasing to N15.40 per minute from N11, SMS charges rising to N5.60, or 1GB of data costing N1,400 instead of N1,000. Any changes in tariffs, if necessary, will follow due process and involve input from all stakeholders, including ATCIS. There is no cause for alarm,” Bilesanmi said.

Moreover, the NCC and ATCIS pledged their commitment to protecting customers’ rights and advised subscribers to rely on verified information from trusted and credible channels.

Last week, reports claimed that Nigerians may soon experience an increase in calls, data plans, and SMS charges from early 2025. It expressed that there are indications that the Federal government may give a nod to the persistent calls of telecommunication companies for tariff review. 

Calls for a tariff hike

For a while, telecom giants such as MTN, Glo, Airtel, and 9mobile have persistently called for an increase in tariff rates. They claimed that the rates which were last reviewed 11 years ago need adjustment considering the inflated economy. 

On the same note, the National Association of Telecommunications Subscribers (NATCOMS) recently called on the NCC to allow telecommunications companies to increase tariffs by a marginal increase of 10 per cent.

MTN, alongside mobile network operators, is seeking approval for a 10% tariff increase. Telecom companies believe that this will help them meet current economic realities.

According to them, this will cover operational costs and the effect of the rising foreign exchange regime and inflation. They also argue that without the adjustment, their financial viability and service standards will continue to deteriorate. They added that the rising costs of diesel prices used in powering base transceiver stations are eating up their revenues.

In a move to push for a tariff hike, MTN Nigeria CEO, Karl Toriola, expressed in October that the company might shut down without a tariff hike. According to Toriola, the telecommunications sector has incurred huge losses that require significant intervention. He added that MTN, the largest telecommunications company in the country with about 78 million subscribers, is not left out.

“There should be no delusion; if the tariff doesn’t go up, we will shut down,” he said.

He emphasized the significance of operators in the country and their contributions to the Nigerian economy. He also urged the government and telecommunications regulators to take swift action to prevent the sector from an uncontrollable financial crisis.

Also, the Chief Executive Officer of 9mobile, Obafemi Banigbe, raised the push for a tariff hike for telecom services. According to him, the telecom industry has been badly hit by the current naira devaluation, forcing major telecom operators to declare significant losses.

“What they charge us has increased tremendously. We need to act fast to keep the sector going. The industry must get free market opportunities to increase tariffs on services,” the 9mobile CEO said.

Likewise in a similar case, internet connectivity provider Starlink announced a 100 per cent increase in the cost of its monthly subscription packages for users in Nigeria on Friday. The Standard (Residential) package, which previously cost N38,000, will now cost users N75,0000.

Though NCC is yet to respond to the development, the announcement follows an attempt to increase the subscription and router purchase prices in October by the same rate

Read More: Starlink increases monthly subscription cost to N75,000 from January 27.

Earlier hint on tariff hike

The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, recently gave a hint on a possible tariff hike for mobile operators. However, he challenged operators to increase the quality of their services.

During a television programme last week, the minister hinted that all the telecommunications industry needs to operate financially is under process. 

“We have conducted a study on the Sustainability of the telecoms sector. The result should be out in about two weeks. This will reveal what we need to do to ensure we can support operators more for improved services,” he said.

He explained the possibility of a tariff hike and added the significance of ensuring valuable output from mobile operators.

“Beyond just the conversation, which is out there, which is about increasing the tariff, Yes, we think there may be a need for the hike, but lots more need to be done as a country to ensure that the sector is competitive and beyond just supporting them to be competitive, the government must support be investing in digital infrastructure as well,” Bosun Tijani added.