- The Federal Competition and Consumer Protection Commission has charged telecom operators to justify the 50 per cent tariff hike through improved services
- It urged telcos to prioritise infrastructure development
- FCCPC said its MoU with NCC is to ensure consumer protection
The Federal Competition and Consumer Protection Commission (FCCPC) has charged telecommunication operators to ensure that the 50 per cent increase in tariff recently approved by the Nigerian Communications Commission (NCC) leads to improved services for Nigerian consumers.
In a statement released on Wednesday, January 22, via its official X handle and signed by the Director of Corporate Affairs, Ondaje Ijagwu.
The statement is coming amid rejection of the increase in tariff by telecommunications subscribers and a threat to sue the NCC.
The FCCPC noted the financial difficulties faced by telecom operators due to rising operational costs but stressed that consumer interests remain central to any tariff adjustments.
The FCCPC said Nigerians have consistently complained of network congestion, dropped calls, inconsistent internet speeds, unusual data depletion, and poor customer service, which must be improved upon by telcos to justify the tariff increase.
The statement read, “The NCC’s approval of a 50 per cent adjustment, which is lower than the 100 per cent increase initially proposed by operators, demonstrates a thoughtful effort to balance industry sustainability with consumer protection.
“We are also pleased with the NCC’s directive to operators to ensure that, henceforth, tariffs are clear, straightforward, and free of hidden charges or complexities.
“Operators are now required to disclose all key details upfront, including the cost, validity period, and the specific inclusions of a plan.
“Consumers can also expect a mandatory disclosure table from their service providers, enabling them to make informed decisions without worrying about unexpected charges or surprises.
“Consumers have consistently expressed the desire for measurable improvements in the quality of service before any tariff increases are implemented. Issues such as network congestion, dropped calls, inconsistent internet speeds, unusual data depletion, and poor customer service have remained prevalent concerns.
“It is, therefore, crucial that tariff adjustments directly translate into demonstrable and tangible service enhancements for consumers.”
FCCPC says telcos must priotise infrastructure development, improve service
The statement added that with the tariff increase, telcos should prioritise development of telecommunications infrastructure and there must be visible and measurable improvements in network reliability, speed, accessibility, and customer service.
It said, “It is non-negotiable that telecom operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment.
“The rationale for the increase must be reflected in better services for consumers who rely on telecommunications for both personal and business purposes.
“Operators are expected to allocate increased revenues responsibly, with an emphasis on infrastructure development and service delivery improvements. Clear mechanisms must be established to monitor how these funds are utilised, ensuring that consumers directly benefit from the adjustments.
“Operators must also clearly communicate the rationale for the tariff adjustments to consumers. This includes ensuring that consumers are fully informed about the nature of the changes, their benefits, and how they align with efforts to improve service delivery and infrastructure.”
FCCPC and NCC signed MoU to protect consumers
The statement also added that the recently signed Memorandum of Understanding between the FCCPC and the NCC is to ensure consumers' protectection, fair competition, and the eradication of exploitative practices in the telecommunications sector.
It said the MoU provides a unified framework to oversee the implementation of the tariff adjustment, ensuring that consumers’ needs remain paramount.
The statement read, “The partnership ensures that the increase does not become a justification for exploitative practices but rather an opportunity to foster fairness, transparency, and accountability in the telecommunications sector.
“As Nigeria embraces rapid technological advancements and increasing reliance on digital connectivity, it is imperative that the benefits of a thriving telecommunications ecosystem extend to all stakeholders, particularly consumers.
“The FCCPC assures the public that, together with the NCC, we will continue to pursue measures that uphold these objectives.
“We are committed to closely monitoring the impact of these tariff adjustments to ensure compliance with established regulatory standards. Operators are reminded that the FCCPC is actively working with the NCC to address concerns that may be raised by consumers during this transition period and beyond.”
Proceeds from tariff hike will go into infrastructure upgrade, service quality – Telcos
Meanwhile, TheRadar earlier reported that telecommunications operators (telcos) in Nigeria said the proceeds from the proposed 100 per cent tariff increase will be channelled to upgrades of major network infrastructure and service quality.
The Chief Executive Officer of MTN Nigeria, Karl Toriola, disclosed this in a column published in BusinessDay on Monday, January 6.
