FG Orders MTN, Airtel, Others To Reverse 10% Tarriff Hike

The development is coming after the regulator failed to secure management approval of the hike which it provisionally approved.

The Minister of Finance Budget and National Planning, Zainab Ahmed had pushed for an additional 5 per cent excise duty on telecom services providers to shore up government dwindling revenue. But the Minister of Communication and Digital Economy, Isa Pantami kicked against it.

The NCC explained that, “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 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.”

But it noted that 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, ” NCC said.

It noted 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.

“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 our 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 regulator promised to entrench very transparent processes and procedures for rates determination in the industry. The process is usually carried out with wide industry consultation.

NCC added, “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.”