October 20, (THEWILL) – The Federal Government has directed telecommunication companies to reverse their recent 10 percent hike on calls and data prices.
The implication of such a decision is that telcos like MTN Nigeria and Airtel, which had initially increased the prices of their data bundles by about 10 percent, will now need to revert to their old prices.
The new development was made known by the Nigerian Communications Commission (NCC), through a statement signed by the Director, Public Affairs, Reuben Mouka, on Wednesday.
According to the statement, the decision to allow telcos such as MTN Nigeria and Airtel to review the prices of some of their tariffs was taken after it critically and realistically reviewed and analysed the operational environment and the current business climate in the nation.
The NCC said that even though the tariff adjustment was provisionally approved by its Management, its Board has now overturned it.
The statement reads: “The attention of the Nigerian Communications Commission (NCC) has been drawn to media reports of unilateral implementation of the recently approved 10 percent upward tariff adjustments for some voice and data services by the service providers, on their networks.
“The consideration for 10 percent 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 the operational environment and the current business climate in Nigeria, as it affects all sectors of the economy.
“Furthermore, 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. As a result, it is reversed.
“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 percent 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.
“In view of the above, the Commission, through a letter sent on the 12th of October 2022, has already directed the affected Mobile Network Operators (MNOs) to reverse the upward tariff adjustment. The Commission will 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.
“The Commission will continue to entrench very transparent processes and procedures for rates determination in the industry. 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.”
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
