The Nigerian Communications Commission (NCC) has announced plans to unveil a new simplified tariff structure for telecommunications operators on December 13, 2024.
This move is aimed at streamlining tariff plans, increasing transparency, and improving consumer experience.
The announcement was made during an interactive session with the media in Abuja by the NCC’s Executive Vice Chairman, Dr. Aminu Maida, who was represented by the Director of Public Affairs, Mr. Reuben Muoka.
Dr. Wada disclosed that the new tariff plan will limit operators to a maximum of seven tariff plans to address consumer concerns and dispel misconceptions about data and airtime usage.
“On December 13, 2024, we will announce the new tariff plan, replacing the original October 27 date.
“After extensive consultations with stakeholders, operators will be limited to a maximum of seven tariff plans. This change aims to provide relief to telecom consumers and clarify misconceptions regarding the use of data and airtime,” he stated.
The NCC believes that this tariff simplification will encourage fair competition among operators while making it easier for consumers to make informed decisions about their telecom expenses.
Consumer education and data usage concerns
The NCC has launched awareness campaigns through advertisements and advocacy to educate telecom users about the changes.
Addressing concerns about data depletion, Dr. Wada explained that thorough investigations had been conducted.
“We mandated operators to engage reputable audit firms, which found that data consumption varies across devices, especially Android phones. Consumers need to understand that data usage depends on device settings and the apps running in the background,” Dr. Maidanoted.
Regulatory updates and compliance
As part of its broader regulatory oversight, the NCC has directed telecom operators to update their contact details with the commission by January 9, 2025.
This initiative aligns with the 2019 Licensing Regulations and is designed to strengthen regulatory processes in the telecommunications sector.
“This directive is part of the NCC’s efforts to enhance industry oversight and ensure the sector remains robust and well-regulated,” said Mr. Muoka.
Operators have been warned that failure to comply with the directive could result in penalties, including fines, suspension, or the revocation of licenses.
What you should know
The Nigerian telecommunications industry is facing increasing operational costs due to rising inflation and foreign exchange challenges, prompting calls for a review of current tariffs.
- The National Association of Telecommunications Subscribers (NATCOMS) has urged the Nigerian Communications Commission (NCC) to approve a 10% tariff increase to help telecom operators sustain their operations and improve service quality.
- Modupe Kadri, the Chief Financial Officer of MTN Nigeria, emphasized that most telecom equipment is imported, making the industry heavily reliant on foreign exchange. He noted that this dependence, coupled with rising costs, has strained operators’ ability to maintain efficient services.
- Kadri warned that failure to address pricing could lead to a decline in investment, drawing parallels to the challenges faced in Nigeria’s oil industry.
“If we are not careful, what happened to the oil industry, which led to the loss of investments, will happen to telecommunications” he stated.
- Bismarck Rewane, CEO of Financial Derivatives Company Limited pointed out that the telecommunications sector, which contributes 16% to Nigeria’s GDP, has not seen a tariff review since 2013.
- He noted that while telecom prices have remained unchanged for over a decade, the cost of goods and services in Nigeria has increased significantly.
