MTN Nigeria CEO Karl Olutokun Toriola appeared on local television station Arise News earlier this month to discuss telecom industry challenges, including a need for an urgent price review and a 100% hike in rates.

The Nigerian Communications Commission (NCC) yesterday authorised mobile operators' request for price increases, but capped the adjustments to 50% of current tariffs rather than the 100% demanded by some telcos.

The NCC, which last approved price adjustments 12 years ago, announced in a statement that, in accordance with its power under Section 108 of the Nigerian Communications Act of 2003 to regulate and approve tariff rates and charges by telecom operators, it will approve tariff adjustment requests by network operators in response to market conditions.

It said: “These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study and requests will be reviewed on a case-by-case basis as is the Commission's standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.”

Tariff rates in Nigeria have remained constant since 2013, despite increased operating costs for telecom companies.

In recent weeks, there has been back-and-forth between the NCC and telecom providers such as MTN, Airtel, Glo, and others requested new pricing adjustments for voice, SMS, data, and other services across the industry.

MTN Nigeria CEO Karl Olutokun Toriola appeared on local television station Arise News earlier this month to discuss telecoms industry challenges, including a need for an urgent price review and a 100% hike in rates.

The telcos cautioned that Nigeria's telecoms sector was in disarray, and that failing to change pricing would have serious ramifications, affecting service quality.

Initially, the Nigerian government rejected the telecom companies' plan to raise tariffs until yesterday.

“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. 

"To this end, the Commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers. 

"Operators are also required to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery,” the Commission said.

It went on to say: “The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.

“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.”

The NCC continued: “Recognising the concerns of the public, this decision was made after extensive consultations with key stakeholders across the public and private sectors. 

"The NCC has prioritised striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.”

As a regulator, the NCC said it will continue to work with stakeholders to build a functional telecommunications environment that protects consumers, supports operators, and sustains the ecosystem that promotes connectivity across the country.