TELECOM Tariff Hike: FCCPC Pushes for More Investment in Infrastructure, Improved Services

The Federal Competition and Consumer Protection Commission (FCCPC) has announced that it will henceforth pay closer attention to the services of telecommunications services providers in Nigeria to ensure that customers get commensurate services to charges.

The position of the FCCPC comes amidst the approval granted by the Nigeria Communications Commission (NCC) to the Telecom operators to increase their tariff by 50%.

The FCCPC in a statement issued  in Abuja on Wednesday by its Director, Corporate Affairs, Ondaje Ojagwu announced that the agency has entered into an MoU with the NCC for proper monitoring of the services of the Telcos.

According to the statement, “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.”

The FCCPC while commending the NCC for being on the side of the public by ensuring that the Telcos did not increase tariff by 100% as initially planned, also urged the operator to invest more in the in improving their infrastructure for better service delivery.

“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,” the FCCPC urged.

Part of the agency’s statement reads:

The Federal Competition and Consumer Protection Commission (FCCPC) notes the announcement by the Nigerian Communications Commission (NCC) approving a 50% adjustment in telecommunications tariffs. While the FCCPC acknowledges the economic pressures faced by telecom operators, including increasing operational costs, we unequivocally state that consumer interests remain paramount.

 

The FCCPC acknowledges the intense pressure faced by the NCC over the years to approve tariff increases due to the rising operational costs experienced by telecom operators, which became more pronounced in recent times. We commend the NCC for adopting a deliberate and measured approach by rationalising the tariff adjustment and linking it to commensurate improvements in service quality while implementing measures to mitigate the impact on consumers. The NCC’s approval of a 50% adjustment, which is lower than the over 100% 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.

 

The Memorandum of Understanding (MoU) recently signed between the FCCPC and NCC highlights a shared commitment to ensuring robust consumer protection, fair competition, and the eradication of exploitative practices in the telecommunications sector. It reinforces the principle that any regulatory or pricing adjustment must balance the sustainability of the industry with the interests of consumers.

 

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.

 

The MoU between the FCCPC and NCC provides a unified framework to oversee the implementation of this tariff adjustment in a manner that meets the needs of consumers. 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.