The Nigerian Communications Commission NCC has approved a new tariff hike for telecom providers in order to address rising operational costs in the industry. The new tariff which will see telecom operators increase the fees for their services by 50%, comes on the back of complaints by the operators that they can no longer provide the services under the current economic situation in the country.
The 50% tariff increase is significantly lower than the 100% hike requested by the operators, indicating a careful consideration of market conditions and ongoing reforms in the country. The NCC argues that the tariff increase is inevitable as it will help close the gap between rising operational costs and the rates charged for telecom services while helping the providers improve their infrastructure, network quality and customer service.
In addition, the NCC says the 50% hike comes after extensive consultation with stakeholders across public and private sectors, helping it strike a balance between creating a friendly business environment for the operators and reducing financial burden on citizens struggling economically.
Despite the explanation given by the NCC, the National Association of Telecoms Subscribers says it will sue the commission over the 50 per cent tariff hike. They noted that there was not proper consultation before the commission approved the 50% hike.
