The 10% tariff increase on voice and data services that was announced by the federal government months ago has been rescinded.
In a statement issued on October 19, 2022, the Nigerian Communications (NCC), on behalf of the government, ordered the cancellation of the newly approved data and voice pricing increase.
Nigeria’s Minister of Communications and Digital Economy, Isa Ali Pantami, argued that the proposed tariff increase, if approved and put into effect as stated by the Federal Ministry of Finance, Budget, and National Planning, led by Zainab Ahmed, will endanger the citizens’ ability to support themselves after already experiencing a number of hardships.
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“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 NCC’s Director, Public Affairs Reuben Muoka said in the statement made available to newsmen yesterday.
According to Pantami, who was quoted by Muoka, protecting the public and ensuring justice for all parties involved remain his primary priorities.
As a result, he opposes anything that will cause the populace to endure further hardship at this crucial moment. He claims that for this course, he secured President Muhammadu Buhari’s assent for the suspension of the proposed 5% excise levy.
The minister claims that the clearance will guarantee a favorable enabling environment for the telecom operators.
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“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 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 statement noted.
The commission reiterated its commitment to continue to entrench very transparent processes and procedures for tariff 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.
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“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 statement added.
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