NCC Approves Limited Tariff Increase for Telecom Operators

The Nigerian Communications Commission (NCC) has granted approval for telecom companies to raise call and data tariffs, but within a regulated limit. The exact new rates are expected to be announced later today.

According to sources within the NCC, the decision follows persistent demands from telecom operators, who have cited rising operational costs as a major challenge. A key factor driving these costs is the high price of diesel, which telcos use to power their base stations. Industry insiders estimate that telecom companies consume approximately 40 million litres of diesel each month, significantly impacting their expenses.

Beyond energy costs, telecom firms have also highlighted the financial burden of acquiring and maintaining advanced software and hardware necessary for network upgrades. The devaluation of the naira last year further worsened their financial situation, prompting calls for an urgent tariff adjustment.

The NCC’s approval allows telcos to increase their tariffs within the existing pricing framework, which currently ranges from ₦6.40 to ₦50 per minute—a structure that has remained unchanged since 2013. Initially, telecom firms sought a tariff hike of between 100% and 300%, but the NCC settled on a 50% increase to help sustain their operations without placing excessive strain on consumers.

An official familiar with the matter stressed that telecom operators have been running at losses and that the adjustment is necessary to prevent a collapse of the industry. The official emphasized that Nigeria’s telecommunications sector relies on costly and specialized infrastructure, making financial stability crucial for continued service delivery.

The telecommunications industry in Nigeria has evolved significantly since the establishment of the Nigerian Telecommunications Limited (NITEL) in 1985. The liberalization of the sector allowed private companies such as MTN Nigeria, Glo Mobile, Airtel, and 9mobile to enter the market, expanding access to mobile and internet services nationwide. However, the current financial strain on operators has raised concerns about the sustainability of these services without necessary adjustments in pricing.