FCCPC: Telecom Tariff Increase Must Result In Significant Service Improvements

The Federal Competition and Consumer Protection Commission (FCCPC) says it has noted 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.

A statement by the Commission’s Director of Corporate Communications, Mr Ondaje Ijagwu says 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 and 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” He stated

In his words “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 and 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”.

According to him, 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.5

“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 and 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”.

He explained that 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 and 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”.

Mr Ijagwu assured the public that FCCPC together with the NCC, we will continue to pursue measures that uphold these objectives adding that they 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 NCC to address concerns that may be raised by consumers during this transition period and beyond and the Commission encourages consumers to report any unfair practices or concerns through its official channels to ensure effective resolution” the Director stressed