*The Arewa Youth Assembly, a Northern-based group in Nigeria, expresses support for the recent approval of 50 percent telecoms tariff hikes for Mobile Network Operators, urging telecoms consumers to remain calm, and trust the regulatory reforms will lead to long-term benefits, including job creation, enhanced consumer protection, and overall industry sustainability in the country

Gbenga Kayode | 绿帽献妻

Against the backdrop of continued mixed reactions resulting from the recently approved 50 percent telecoms tariff adjustments for the Mobile Network Operators (MNOs), the Arewa Youth Assembly, a Northern-based group, has said the Nigerian Communications Commission鈥檚 (NCC) recent approval of tariff hikes for Telcos will strengthen the sector, improve service quality, consumer Quality of Experience (QoE), and attract fresh investments into the industry.

The group cautioned that without a price adjustment, the telecoms sector is at risk of collapse with severe consequences for the wider economy, citing the critical role of telecommunications in healthcare, education, business, and governance, among others in the West African country.

The Arewa Youth Assembly also noted that the NCC鈥檚 regulatory action is a necessary step to further sustain the sector and unlock new investment opportunities.

绿帽献妻 reports telecoms sector regulator January 13, 2025, approved the network providers鈥� proposal for upward tariff adjustments, pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators in the country.

MNOs to implement tariff adjustments ‘transparently’, says NCC

Mr. Reuben Muoka, Director of Public Affairs, also stated that the adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

The Commission said: “These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews.

“It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.”

According to NCC, telecoms tariff rates have remained static since 2013, despite the increasing costs of operations faced by Nigerian telecoms operators.

In regard to the overarching objective of the approved cost adjustments, Muoka noted that the move is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.

The statement further noted: “These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.鈥�

The Director of Public Affairs noted: “The NCC has prioritised striking a balance between protecting telecoms consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.

“The NCC recognises the financial pressures faced by Nigerian households and businesses, and remains deeply empathetic to the impact of tariff adjustments.”

The Commission, therefore, mandated the MNOs to implement the tariff adjustments “transparently and in a manner that is fair to consumers.”

The operators are also directed to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery to telecoms consumers.

Why we support regulatory policy on tariff adjustments: Danlami, Assembly Speaker

Mohammed Salihu Danlami, Speaker of the Assembly, in a recent statement, also aligned with the NCC鈥檚 move, stressing that the Nigerian telecoms industry has been operating under severe economic pressure, which makes any upward tariff adjustments long overdue.

Danlami stated: 鈥淭he telecommunications sector, which directly employs millions of Nigerians and powers other industries, has been struggling due to rising operational costs, including diesel, power, foreign exchange rates, and maintenance expenses.

“Despite these challenges, the industry has maintained its pricing structure, making it difficult to sustain quality service delivery.鈥�

Underscoring the importance of the telecoms sector regulatory Commission鈥檚 approval for upward adjustment of tariffs, the Arewa Youth Assembly equally averred that the sector would be strengthened with improved Quality of Service (QoS) and consumer experience while attracting new investment opportunities.

He said: 鈥淲ith the additional revenue, telecoms operators will be able to upgrade their infrastructure, expand network coverage, and enhance service delivery.鈥�

Interplay of tariff adjustments, improved QoS and consumer experience, by Arewa Youths

Urging telecoms consumers and other industry stakeholders to remain calm and trust that the Commission鈥檚 ongoing reforms would lead to long-term benefits, Danlami stated the group also dismissed criticisms over the tariff hikes in certain quarters, It argued that those opposing the tariff adjustments are the same individuals who complain about poor service quality by MNOs in recent times.

Danlami stated: 鈥淥perators cannot improve infrastructure without cost-reflective pricing.

鈥淎ddressing quality-of-service issues requires fresh investments, which the tariff adjustment makes possible.鈥�

The Arewa Youth Assembly, however, urged the telecoms companies to ensure that the additional revenue generated via the tariff adjustments is channeled into service improvements, transparency, and customer satisfaction in the Nigeria digital ecosystem. The Assemble as well advised telecoms consumers to remain calm, and trusting that the regulatory reforms will lead to long-term benefits, including job creation, better consumer protection, and overall industry sustainability in the end.

The Northern youth-based organisation restated its commitment to supporting policies that drive national economic growth while ensuring fairness and accountability within the telecommunications sector of the Nigerian economy.

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