The Nigerian Communications Commission (NCC) has directed Mobile Network Operators (MNOs) in the country, to reverse the unilateral upward tariff adjustment for some voice and data services on their networks.
The Commission said in a statement signed by its Director, Public Affairs, Mr. Reuben Muoka, that it would carry out further consultations with all industry stakeholders on the best approaches that will protect and uphold the interest of both the consumers and the service providers.
Recall that there have been media reports of unilateral implementation of the recently approved 10 per cent upward tariff adjustments for some voice and data services by the service providers, on their networks.
According to the NCC, “The consideration for 10 per cent approval for tariff adjustments for different voice and data packages was in line with the mandates of the Commission as provided by the Nigerian Communications Act, 2003, and other extant Regulations and Guidelines, as this was within the provisions of the existing price floor and price cap as determined for the industry.
“The decision was also taken after a critical and realistic review and analysis of Nigeria’s operational environment and the current business climate, as it affects all sectors of the economy.”
It further stated that even though the tariff adjustment was proposed and provisionally approved by the Management, pending the final approval of the Board of the Commission, in the end, it did not have the approval of the Board of the Commission, and therefore, it is reversed.
The Commission recalled in the statement that The Honourable Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, has maintained that his priority is to protect the citizens and ensure justice to all stakeholders involved, as such, anything that will bring more hardship at this critical time will not be accepted.
“This was also why he obtained the approval of President Muhammadu Buhari for the suspension of the proposed 5 per cent excise duty, in order to maintain a conducive enabling environment for the telecom operators.
“Much as there is an increase in the cost of production, the provision of telecom services is still very profitable and it is necessary that the subscribers are not subjected to a hike in charges,” the statement further read.
The Commission stated that it will continue to entrench very transparent processes and procedures for rate determination in the industry, noting that the process is usually carried out with wide industry consultation.
“It is through these processes that price floors and price caps for data and voice services are benchmarked, regularly reviewed, and determined from time to time.
“The Commission will continue to abide by this time-tested process and international best practice to ensure efficient pricing mechanism for the telecommunications industry in Nigeria,” the Commission assured.
