Recognising the vital role of the telecoms sector in economic growth, the Presidency yesterday backed the 50 percent tariff hike approved for telecommunications operators by the Nigerian Communications Commission (NCC).
The Presidency said a price review was necessary to keep the telecoms industry viable.
It, however, noted that the approval does not suggest an immediate 50 per cent tariff increase.
This was contained in a statement released by the President Bola Ahmed Tinubu Media Centre.
The centre said: “It is important to highlight that this approval does not mean automatic tariff increases. Operators can maintain their current rates if they find them sustainable.”
While describing the approval as an important step aimed at addressing critical challenges in the sector, the Centre noted that the telecoms industry had operated under static price mechanisms for over a decade as prices have remained unchanged since 2013, despite significant increases in the cost of operations.
“This has placed immense strain on service providers, who are tasked with maintaining infrastructure and ensuring quality service delivery.
“The NCC’s decision to allow a tariff adjustment of up to 50 per cent within existing tariff bands was, therefore, necessary, though it is noteworthy that this adjustment remains significantly lower than the over 100 per cent increase requested by the operators.
“This deliberate move strikes a balance between safeguarding the interests of service providers and protecting the economic well-being of Nigerian households and businesses,” the Centre stated.
The Centre noted that while many Nigerians may view tariff adjustment with apprehension, they should understand the critical role of the telecoms sector in the economy.
It added that the industry currently supports millions of individuals and businesses that rely on uninterrupted connectivity for daily operations, hence it must be sustained.
According to the Centre, without a sustainable pricing model, the sector risks stagnation, as operators would not be able to maintain or upgrade their infrastructure to meet increasing consumer demand.
It added that by approving the ‘moderate’ adjustment, the NCC has ensured that operators remain viable while creating room for innovation and improved service delivery.
Beyond the tariff hike approval, the Centre noted that the NCC has also 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.
“The NCC’s proactive approach to regulating the adjustment ensures that it is implemented in a way that benefits everyone-operators and consumers alike,” it added.
