Admin l Wednesday, October 19, 2022
ABUJA, Nigeria – The Federal Government has directed telecommunications service providers to reverse the unilateral implementation of the recently approved 10 per cent upward tariff adjustments for some voice and data service on their networks.
In a statement, Director, Public Affairs, Nigerian Communications Commission, (NCC) Mr. Reuben Muoka noted 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 for by the Nigerian Communications Act, 2003, and other extant Regulations and Guidelines, since it was within the provisions of existing price floor and price cap as determined for the industry.
But the NCC said the decision to reverse tariff was 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”, Muoka said in the statement.
He said 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 and that 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”, he said, adding that much as there is an increase in the cost of production, the provision of telecom services is still very profitable and 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 NCC spokesman said, noting that 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, he noted will continue to entrench very transparent processes and procedures for rates determination in the industry and 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”, Muoka explained.
He assured that 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.