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  • Lagos ‘ll collaborate with NCC to strengthen digital economy

    Lagos ‘ll collaborate with NCC to strengthen digital economy

    Governor Babajide Sanwo-Olu said on Friday that his administration would collaborate with the Nigerian Communications Commission (NCC) to strengthen the digital economy for the benefit of state residents.

    The decision to work with NCC, according to Sanwo-Olu, was in line with his administration’s commitment to education and technology, which is the third pillar of the government’s THEMES+ developmental agenda of his administration.

    The governor announced the decision during a courtesy visit by the Nigerian Communications Commission (NCC) delegation led by its Executive Vice Chairman and Chief Executive Officer, Aminu Maida, at the Lagos House, Ikeja.

     Sanwo-Olu also promised to collaborate with the Commission to protect critical infrastructure and the advancement of telecom and the digital economy.

    He disclosed that his administration has attracted investments amounting to about $1.2 billion from different organisations into the digital economy.

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    He said: “We have it on record that within five years of our administration, we have attracted investments above about $1.2 billion directly into the digital space around building data centres, hyper-scale data centres, landing submarine cables, and creating a network of users and providers.”

    Speaking earlier, the Executive Vice Chairman/CEO of NCC, Aminu Maida, commended Sanwo-Olu’s administration for the developmental strides recorded in the area of telecommunication, technology and digital economy.

    He said Lagos is a strategic partner with NCC, hence the need for collaboration to protect digital infrastructure, issues of Right of Way, adequate notifications during road construction and rehabilitation, among others.

  • Nigeria experienced over 50,000 fibre cuts, says NCC

    Nigeria experienced over 50,000 fibre cuts, says NCC

    Last year, Nigeria experienced over 50,000 fiber cuts incidents across the country of which around 30,000 were attributed to federal and state road construction activities, EVC/CEO of NCC, Dr. Aminu Maida, has said.

    He spoke at the inauguration of a Joint Standing Committee on the Protection of Fiber Optic Cables put together by the Federal Ministry of Works (FMoW) and the Federal Ministry of Communications, Innovation, and Digital Economy (FMoCIDE).

    The Committee was put in place to address the persistent issue of fiber optic cuts and damages caused by road construction and rehabilitation activities. These disruptions have had a significant negative impact on telecommunications services across Nigeria.

    In the extreme, some of these incidents had led to major network outages like the February 2024 nationwide MTN network outage.

    Dr. Maida emphasized the significance of the Committee’s mandate, noting that it has the potential to significantly reduce service disruptions across Nigeria’s telecommunications industry.

    He said: “This is a pivotal moment for the telecommunication industry and its customers. Fiber networks are the foundation of Nigeria’s broadband ecosystem, providing the essential high-capacity backhaul required to deliver ultra-fast 4G and 5G speeds, as these next-generation mobile technologies rely on fiber infrastructure to ensure low latency, high reliability, and seamless data transmission.

     “Last year, we experienced over 50,000 fiber cuts incidents across the country of which around 30,000 were attributed to Federal and State Road construction activities.

    In the extreme, some of these incidents had led to major network outages like the February 2024 nationwide MTN network outage.

     “A key contributor to the increasing number of fiber cuts attributed to road construction activities is the lack of an efficient handshake mechanism between road construction companies and operators of the fiber infrastructure.

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    “I am optimistic that the work of this Committee will lead to a significant reduction in fiber cuts attributed to road construction which would then reduce network outages, avoid unnecessary expenditure on repair works and reduce the need to put redundant routes in place to serve as alternatives whenever there are outages due to fiber cuts.

    “This initiative is not just for the benefit of the telecommunications industry but for all Nigerians. Every time a fiber cut occurs, consumers experience service disruptions. The industry is forced to invest in costly redundancy measures, but if we can prevent these avoidable disruptions, operators can redirect resources towards network expansion and infrastructure improvement.”

    The Joint Standing Committee was inaugurated at the Boardroom of the FMoW, by the Permanent Secretary, Engr. Olufunso Adebiyi, and his counterpart at the FMoCIDE, Engr Farouk Yusuf, with the attendance of Dr. Maida. The Committee is comprised of key staff from the two ministries and the NCC.

    The main assignment of the Committee is to establish and maintain clear communication/co-ordination channels between the two ministries and the NCC in order to limit and prevent damage to telecommunications fiber optic cables during road constructions or rehabilitation activities.

    Also speaking while inaugurating the Committee, Engr. Adebiyi directed committee members to establish modalities to ensure the reduction of damage to deployed fiber optic cables resulting from road construction and maintenance activities, as well as vandalism which has caused severe incidences of service disruption across the country.

    He said the Committee will serve as a coordinating body for all issues pertaining to the protection of fiber optic cables, before, during and after the completion of road constructions or maintenance activities, and will meet on a regular basis to discuss identified problems, agree on industry-wide solutions, set standard engagement processes and procedures, as well as share monthly performance reports.

     “They are also expected to develop an instant communication mechanism to facilitate prompt communication and dissemination of information amongst all stakeholders,” he said.

    He assured that going forward, the Ministry will ensure that the placement of fiber cables will be considered in the planning, design and construction of the country’s road networks, and would include providing for ducts during constructions.

    Engr. Adebiyi further stated that the committee will work closely with all Federal Controllers of Works (FCW) to give attention to the task of protecting this sensitive infrastructure during the planning and implementation stages of projects across the roads in the country, while aligning with the telecom operators on all ongoing and future projects.

    In his remarks, Engr. Yusuf highlighted the significance of fiber optics cables to the country’s economy, stating that fiber networks are the backbone of Nigeria’s digital economy, enabling the seamless delivery of both fixed and mobile broadband services essential for nationwide connectivity, economic growth, and technological innovation.

    He said the Committee’s work is crucial to ensuring that telecommunication services are not hampered by the work of construction companies.

  • NCC’s tariff increase: Another misguided step in wrong direction

    NCC’s tariff increase: Another misguided step in wrong direction

    The recent decision by the Nigerian Communications Commission (NCC) to increase phone call tariffs has sparked widespread concern and criticism across the country. Such move, which is coming at a time when Nigerians are already juggling  with severe economic challenges, poor take homes against galloping like inflation much demonstrates a troubling disconnect between regulatory decisions and market pricing realities.

    Such timing of this tariff increase by 50 percent on operating tarrifs could not be more inappropriate and insensitive. With inflation rates soaring without any form of immediate reprieve and the purchasing power of the average Nigerian readily and repeatedly diminishing, adding to such economic woes, the cost of essential communication services places an unnecessary  and unfair burden on citizens who rely heavily on mobile communications for both personal and business purposes.

    How do you go ahead with steep increases in tariffs when a number of glaring issues  affecting mobile telephony  are yet to be addressed by the NCC. These recurring problems which stem from NCC’s shambolism as a  regulator are still lingering. So the average Nigerian is none the better since neither the QoS nor the rates are favourable, mobile subscribers who have been plagued with these issues will only adjust to the continuous provision of substandard services from network providers, including frequent dropped calls, poor network coverage, and inconsistent data speeds and consumption. The regulatory body’s inability to effectively address these fundamental challenges raise a number of serious questions about its priorities and regulatory effectiveness.

    The billing methods of these mobile telephony companies have long been a source of frustration for Nigerian consumers. Subscribers are usually piqued with regular cases of unexplained deductions, questionable charges. Shouldnt this be the thrust of the NCC? Shouldnt the leadership of the NCC focus  on these critical consumer protection issues? Isnt it suprising  that it is the issue of tarriff that the leadership of the NCC has chosen to implement? One that will definitely bring about immense  hardship to the subcriber while failing to address these core issues.

    Network providers have consistently hidden under the unveriable claims them running and incurring  high operational costs as justification for various price increases, these are telecom companies that have year in year out declared jawbreaking sums as profits after taxes. Some of these telecom operators prefer to spend more on lush adverts and sponsor reality shows and yet there is little evidence of corresponding improvements in service quality. In saner  climes the NCC as a regulator would first of all seek the kingdom of evidential improvements  before deciding on any form of price increases. The message  the NCC is merely sending to the world is that poor performance will always be rewarded without seeking guarantees of offering better service quality.

    Read Also: Centre lauds NLC, NCC parley over telcom tariffs

    I have said this before and i will repeat such here, and that is that the the regulatory framework governing Nigeria’s telecommunications sector requires progressive  reform. The NCC’s approach to regulation has been largely dour rather than proactive, it has like Rome’s Nero fiddled while the sector continues to do the forward and backwards dance, it has failed to galvanise the telecoms sector with robust measures that would protect consumer interests while fostering healthy competition among service providers as well as enhance the sector’s strategic place in our economy, not only as a meana for creating jobs but also as a hib for continuous investment. In addition to this, the commission’s monitoring and enforcement mechanisms have time and time proven incompetent in ensuring compliance with service quality standards, yet it seems more focused on facilitating revenue increases for operators.

    Moreover, the lack of transparent consultation with key stakeholders before implementing this tariff increase raises concerns about the NCC’s decision-making process. Consumer advocacy groups, business associations, and other relevant stakeholders should have been given meaningful opportunities to provide input and raise concerns before such a significant change was approved.

    The economic impact of this tariff increase extends beyond individual consumers. Small and medium-sized enterprises, which form the backbone of Nigeria’s economy, rely heavily on telecommunications services for their daily operations. Increasing their operational costs through higher call tariffs could have ripple effects across various sectors of the economy, potentially leading to job losses and reduced economic activity.

    It is worth noting that many other countries are working to reduce communication costs to drive digital inclusion and economic growth. The NCC’s decision to move in the opposite direction raises questions about Nigeria’s commitment to digital transformation and economic development goals.

    The commission should reconsider this ill-timed tariff increase and instead focus on:

    The immediate reversal of this tariff increase would demonstrate the NCC’s commitment to protecting consumer interests and promoting sustainable growth in Nigeria’s telecommunications sector. The regulatory body must prioritize addressing the fundamental challenges facing the industry rather than implementing measures that further burden already struggling consumers.

    Until these critical issues are adequately addressed, any attempt to increase tariffs can only be seen as premature and detrimental to the interests of Nigerian consumers. The NCC must return to its primary mandate of ensuring quality service delivery while protecting consumer interests. The current tariff rates should be maintained, if not reduced, until there are substantial improvements in service quality and regulatory oversight.

    The way forward requires the reversal of such an ugly increase and the establishment of a more proactive regulatory regime, one  that considers the interests of all stakeholders while prioritizing the development of a robust, efficient, and consumer-friendly telecommunications sector. The NCC must demonstrate stronger leadership in this regard and work more effectively to fulfill its regulatory responsibilities, i lend my voice to the reversal of the tarrif hike, it is unjust! It is unfair!! It is the height of regulatory irresponsibility!!!

  • NCC, NLC and the aborted protest

    NCC, NLC and the aborted protest

    • By Ahmad Sajoh

    There are times when it becomes absolutely necessary to empathize with Nigerians over situations that are manifestly adverse. However, sympathy or empathy does not mean overlooking reality. Honestly, that is the situation we are in with the recent tariff adjustment by the telecommunication operators in Nigeria today. Nigerians may be famous for being resilient, but any increase in cost of living stretches such resilience further. But looking at the situation realistically one must be honest in accepting that the dangers of denying the telecom operators a cost reflective tariff adjustment at this point in time may be more costly to the consumers in the long run than allowing them to adjust their tariffs.

    Expansion of access and service efficiency are more important even to the consumers than keeping a cap that blocks expansion and better quality service. Perhaps allowing them to adjust their tariff to reflect their operational cost and guarantee return on investment may not only be a better option at the moment but the only one necessary.

    Unfortunately that is not the kind of language and reasoning most Nigerians want to hear. As a consumer who relies on the networks even for my work, I am a victim of the adjustment too. But I am courageous enough to look at the bigger picture and empathize with the investors in the sector as much as I do the consumers. I am sure the Nigerian Communication Commission (NCC) as the regulator may have had extreme difficulty in the balancing act of protecting consumers while evaluating the fears and contentions of the investors.

    I wish I had access to the NCC, I would have asked them a number of questions particularly concerning how they were able to navigate the complex balancing act required to approve a tariff adjustment at this point in time.

    I am sure it has been a difficult decision to take. However these may not be the real reasons for my intervention though. At the risk of being labelled an apologist for officialdom, I make bold to say my intervention is prompted by the threat from the Nigerian Labour Congress (NLC) to hold a protest on February 4. An educated and well informed Labour movement would have adopted a more pragmatic approach to such issues. Their arguments would have been more robust beyond the narrow prisms of grandstanding, attention seeking and empty rhetoric.

    First of all, before the Labour centre intervenes, the affiliates grounded within the sector would have provided meaningful discussions on the subject matter. Recall how NUPENG and PENGASSAN used to educate Nigerians on the petroleum industry. What are the unions in the telecom sector saying? Why is NLC as the Labour Centre leading a protest without engaging the public on the real issues in contention?

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    For example, the last time a tariff adjustment was carried out in Nigeria was in 2013. That is more than a decade ago. What were the operational costs then and what is it today? As a matter of fact, what were the dynamics of the telecommunications ecosystem then, and what is it now?

    For sure, by 2013 data services were on the margins of the telecom operations. Internet penetration was low. The number of internet-enabled devices was fewer. Smart devices were even far fewer. Number of subscribers was also lower than today. Reliance of some sectors like banking on the internet was equally lower than it is today. So how come Labour or anyone will expect the telecom sector to freeze on a time frame when every other thing has gone up?

    Let me start from the area that should concern Labour the most. In 2013 the minimum wage was N30,000. Today it is N70,000, more than double the amount in 2013. Other operational costs like the cost of fuel, value of the Naira in dollar terms and electricity tariff have all gone up. Will it not be unfair to expect the telecom industry to stagnate and not respond to these realities?

    I am not holding brief for them, but I believe that as private sector players, if there is no return on their investment, they may be forced to divest from the economy. Will Labour rather the operators lay-off staff and scale down operations?

    By the way, will the Labour movement keep quiet if telecom operators refuse to implement the minimum wage? Is it fair to ask someone to increase his operational cost without a corresponding fair increase in income?

    The telecommunication industry has become vital to the economic well-being of the nation. So many other sectors have grown to be dependent on the telecom infrastructure for both their functions and operational efficiency. The banking sector today will definitely suffer major setback without the back-up of the telecom sector. To that effect, the role of the telecom sector in job creation is beyond just its own industry. It is cross-cutting, involving practically all sectors of the economy. For example, apart from calls and data services, the Point of Sale (PoS) operator in the remotest village will be jobless without data from the telecom operators.

    In view of this, what the Labour movement should have done is first to request its affiliates within the telecom sector to dissect the dynamics of the sector in a manner that citizens will understand. How much in terms of costs goes into one minute of calls or one unit of data? How does it compare to the units charged as tariff? In doing so, let them take all variables into consideration.

    Take the base transmission stations (BTS) for example; almost all of them work on diesel powered generators. Each requires a minimum of three security personnel on site at any point in time due to several factors particularly the raging insecurity in the country. Despite that, from time to time, bandits and other miscreants attack and vandalize the towers and other installations. There are many other components and infrastructure that are required for the functioning of the sector which are absolutely essential.

    Unfortunately most of them are not available locally and must be acquired abroad using hard currencies whose value had gone up. Some of us are more inclined to express the genuine fear that if pushed too hard within an environment that is non-sustainable, investors in the sector may become too uncomfortable and be prompted to withdraw their investments and go elsewhere.

    What organized Labour and anyone genuinely concerned about the telecom sector should be advocating for is an affordability template that respects value on investment. In such a situation, the key factors required of the service provider after the tariff adjustment should be service efficiency. The operators must expand their facilities and improve access and quality of service. It is for this reason that the NLC and indeed all patriots should demand that the NCC ensure that there is service efficiency across the whole country, not just the urban centres. Since it is possible to monitor usage such as call time and cost on one’s personal devices, the regulator must also create a window for consumers to lay complaints through digital means in real time.

    Nigerians need to extract assurances from the NCC that if complaints are escalated to them it will be attended to immediately. Let all tariffs be a function of service efficiency. Labour and indeed all Nigerians are to task NCC and telecom operators to provide tariff information and conditions affecting consumption patterns. That way, consumers can easily manage their consumption patterns and extract maximum value for money spent. To that effect Labour should insist on the provision of enhanced infrastructure that will lead to growth and service provision to all underserved areas. While investors in the sector are asking for cost reflective tariff system, consumers on the other hand should be demanding a value for money tariff system.

    I would rather that the NLC focuses on these issues rather than some ill-conceived protest that is just mere grandstanding. Over the years, the current Labour movement had been suffering from increasing erosion of public confidence in their antics. The Nigerian public is much wiser today.

    •Sajoh, a public affairs analyst, wrote from Abuja.

  • Centre lauds NLC, NCC parley over telcom tariffs

    Centre lauds NLC, NCC parley over telcom tariffs

    The Centre for Good Governance (CGG) has commended the Nigeria Labour Congress (NLC) and the Nigerian Communications Commission (NCC) for their recent meeting to discuss the 50% increase in telecommunication tariffs.

    The meeting, which was led by Secretary to the Government of the Federation, George Akume, resulted in the suspension of the NLC’s proposed protest, initially scheduled for today, February 4, 2025.

    The NLC had rejected the 50% tariff hike, citing its potential to exacerbate the economic hardship faced by Nigerians, who are already struggling with a minimum wage of only ₦70,000.

    However, following the meeting, the NLC has agreed to wait for the outcome of a 10-man committee review before determining their next course of action.

    This committee, comprising five members from the Federal Government and five from the NLC, will provide a platform for thorough examination and analysis of the tariff increase.

    In a statement by its Executive Director, Dr Martins Tayo, the Centre said the decision to establish this committee demonstrates a willingness to engage in constructive dialogue and find a solution that benefits all stakeholders.

    The Centre applauded the NLC and NCC leadership for their commitment to maintaining industrial harmony and protecting the interests of Nigerians.

    Read Also: NCC commended for 50% tariff adjustment

    Tayo noted that both institutions have proven to be pro-masses and people-centric by engaging in constructive dialogue.

    He added: “We appreciate the NLC’s willingness to wait for the outcome of the committee’s review before determining their next course of action. This decision demonstrates the union’s commitment to finding a mutually beneficial solution and its willingness to engage in constructive dialogue.

    “As an organisation that promotes good governance, we recognise the importance of collaboration and dialogue in addressing the challenges faced by our nation.

    “We believe that both the NLC and NCC have demonstrated a genuine commitment to the welfare of Nigerians and are working towards a mutually beneficial solution.

    “We urge all parties involved to continue engaging in constructive dialogue and to prioritize the interests of the Nigerian people. By working together, we can find solutions that promote economic growth, social justice, and good governance.

    “The Centre for Good Governance will continue to monitor the situation and provide support to ensure that the interests of Nigerians are protected”.

  • NCC commended for 50% tariff adjustment

    NCC commended for 50% tariff adjustment

    • By Afolabi Idowu

    Telecommunications provider, 9mobile, has applauded the Federal Government and the Nigerian Communications Commission (NCC) for approving a 50% tariff adjustment—a vital initiative aimed at addressing persistent challenges in Nigeria’s telecom sector.

    This decision, reached after extensive deliberations, marks a significant step towards ensuring the long-term sustainability of the industry by enabling the necessary investments to enhance service quality for consumers nationwide.

    The telecom industry had previously advocated for a substantial tariff review to combat surging operational costs, driven by inflation, skyrocketing energy prices, and a currency devaluation exceeding 300%.

    While the industry’s initial request called for a larger increase up to 100%, the NCC’s approval of a 50% adjustment represents a balanced approach to safeguarding affordability for consumers while addressing industry sustainability concerns.

    9mobile’s CEO, Obafemi Banigbe, emphasised that the tariff adjustment will enable telecom operators to reinvest in critical infrastructure upgrades and capacity expansion—both of which have been delayed due to financial constraints.

    “This tariff adjustment is timely and essential,” Banigbe stated, adding, “It allows operators to fulfill obligations and capital commitments necessary for future growth. Without this, the industry risked a decline in service quality due to insufficient funding. With this change, we are better positioned to drive innovation, growth, and enhanced connectivity for Nigerians.”

    Banigbe further noted that the increase provides a much-needed boost for 9mobile’s ongoing business transformation. This includes modernizing network infrastructure, expanding coverage, and improving digital platforms for faster and more reliable connectivity. “This decision enables us to replace outdated equipment, expand our network to underserved areas, and enhance the overall customer experience,” he added.

    The tariff adjustment is a strategic measure to bridge the funding gap exacerbated by rising operational expenses, many of which are denominated in foreign currency.

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    These challenges have strained telecom operators, limiting their ability to reinvest and driving up debt levels.

    The new pricing structure provides a pathway to financial stability while ensuring the delivery of top-tier services to millions of Nigerians.

    Telecom operators have long advocated for a market-reflective pricing structure, highlighting its importance for industry sustainability. The approval of this tariff adjustment ensures that operators can balance affordability with the need to cover escalating costs and maintain quality services.

    Reaffirming 9mobile’s commitment to the Nigerian market, Banigbe stated: “Our focus remains on investing in infrastructure that delivers reliable and innovative services to our esteemed customers. We are dedicated to empowering Nigerians through connectivity, expanding access, and supporting the nation’s vision of becoming a leading digital economy in Africa.”

    With this development, 9mobile is poised to further strengthen its reputation as a customer-centric, quality-focused service provider, ensuring that Nigerians remain connected and empowered in an increasingly digital world.

  • NCC explain slow revenue

    NCC explain slow revenue

    The Nigerian Communications Commission (NCC) has attributed its low revenue generation in 2024 to the failure of telecommunications companies to purchase 5G spectrum licences.

    The NCC’s Director of Financial Services, Yakubu Gontor, and its Chief Executive Officer/Executive Vice Chairman (CEO/EVC), Aminu Maida, disclosed this yesterday during the 2025 budget defense before the National Assembly Joint Committee on Communications.

    Speaking at the session, Gontor explained that the Commission could not auction the 5G spectrum due to market conditions.

    He said the two large operators that already acquired 5G spectrum were underutilizing it, while the third-largest operator, whom the NCC had anticipated would purchase the spectrum, decided that it was not the right time for such an investment. Instead, they opted to focus on expanding their existing business.

    According to him, the Commission was operating on very fine margins, with only one slot available for sale and just one potential buyer. He further noted that 9mobile was undergoing a financial restructuring, making it an unsuitable candidate for the purchase at the time.

    Gontor also revealed that despite a 50% increase in telecom tariffs, the NCC may not generate significant revenue from spectrum sales in 2025. He emphasized that the priority for telecom operators this year is improving service quality, and while spectrum is an essential resource, it is currently not their top investment priority.

    Despite these challenges, he noted that the introduction of new technologies, including 6G, could generate over $1 billion in revenue for the federal government. He explained that spectrum sales typically follow a 10-year cycle, similar to leasing land. When a lease is paid for ten years upfront, the revenue from that lease sustains operations for the next nine years.

    Presenting the NCC’s 2025 budget, Gontor stated that the Commission projects total revenue of N272.433 billion. He said the major component of this revenue comes from an operating levy of N205.7 billion and spectrum fees of N49.784 billion, along with other income sources.

    Read Also: GSMA lauds NCC telecom tariff hike

    Regarding expenditures, he explained that the total recurrent expenditure is projected at N95.668 billion, while capital expenditure is estimated at N10.735 billion. Additionally, N30.13 billion has been earmarked for special projects. This brings the total projected expenditure, including recurrent, capital, and special projects, to N136.534 billion.

    Gontor added that the NCC expects to remit N120.836 billion to the Consolidated Revenue Fund (CRF), while remittances to the Universal Service Provision Fund (USPF) will be determined in 2025.

    Providing insight into the 2024 budget performance, CEO Aminu Maida revealed that the NCC generated N195.8 billion, of which N111 billion was remitted to the CRF. He explained that N137.6 billion was earned from annual operating fees, while N26.4 billion came from spectrum fees, among other revenue sources.

    Maida, however, noted that the Commission had initially targeted N292.3 billion in revenue but fell short due to its inability to auction a 5G spectrum slot. He explained that this shortfall also affected the NCC’s remittance to the federal government, as a significant portion of spectrum fees is allocated to the CRF.

    Additionally, he pointed out that the 2024 budget assumed a 12.5% cost of collection from the federal government, but this was ultimately not approved. As a result, the NCC’s actual operating income was only around 20-35% of the projected figure. Due to these challenges, the Commission revised its 2025 revenue forecasts to be more realistic.

    Speaking on behalf of the Joint Committee, Senator Aliyu Ikrah Bilbis stated that the NCC’s submission would enable lawmakers to ask critical questions and provide guidance to help improve the Commission’s operations in 2025.

  • GSMA lauds NCC telecom tariff hike

    GSMA lauds NCC telecom tariff hike

    A global advocate for sustainable policy reforms in the telecommunications sector, GSMA has welcomed the 50 percent telecom tariff hike by the Nigerian Communications Commission (NCC).

    The Nation reports NCC approved a 50% tariff increase for mobile network operators, marking a pivotal moment in Nigeria’s digital transformation.

    This decision, the first tariff adjustment in 12 years, is set to unlock substantial investment in telecommunications infrastructure, increasing 4G coverage to 94% of the population and enabling mobile internet access for an additional 9 million people, with 2 million people in underserved areas.

    In a statement, it said: “The GSMA, a global advocate for sustainable policy reforms in the telecommunications sector, welcomes this decision as a major step forward for consumers and the economy.

    “By enabling mobile operators to invest in expanding and upgrading their networks, the tariff increase will bridge the digital divide and drive innovation across key sectors, including healthcare, education, and agriculture.”

    Angela Wamola, Head of Sub-Saharan Africa at GSMA, commented on the development: “This decision by the NCC is an important milestone for Nigeria’s digital future. By enabling sustainable investment, we are improving the quality of service for consumers and fostering opportunities for innovation and economic growth.

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    “However, to fully unlock the potential of this reform, it is critical to implement additional measures such as simplifying Right of Way permits, implementing a Critical National Infrastructure plan, and reducing the mobile sector’s tax burden. These steps will be essential to accelerate digital adoption across sectors.

    “It is estimated that increased digitalisation in agriculture, manufacturing, transport, trade, and the government will increase GDP by around two percentage points by 2028. This would also create nearly 2 million jobs and raise an additional NGN 1.6 trillion in tax revenue.

    “The tariff increase is projected to unlock over $150 million in additional investment, expanding 4G network coverage from the baseline 90% to 94% of the population. This improvement will benefit around 9 million people, with nearly 2 million expected to gain access to mobile internet services based on current adoption levels in rural areas, according to GSMA Intelligence.

    “This milestone reflects the successful partnership between the Nigerian government, industry stakeholders, and the GSMA, demonstrating how collaborative policy reforms can drive economic development and digital inclusion. By advocating for policies that balance affordability with the need for sustained investment in infrastructure, the GSMA has played a critical role in ensuring the benefits of mobile connectivity are accessible to all Nigerians.

    “Improved network coverage will enable transformative access to digital services, including online education, telemedicine, e-commerce, and mobile financial tools. Additionally, the investment will drive the adoption of next-generation technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT), which are essential for advancing innovation across sectors like precision agriculture, connected transportation, and smart healthcare. By fostering the adoption of these technologies, Nigeria is positioning itself as a leader in Africa’s digital economy.

    “While the tariff increase is a significant step forward, the GSMA calls for further policy actions to amplify its impact. These priorities, outlined in the recent GSMA report The Role of Mobile Technology in Driving the Digital Economy in Nigeria, include:

    “Streamlining Right of Way (RoW) permits: Simplify and standardise the process to accelerate infrastructure deployment.

    “Implementing Critical National Infrastructure (CNI) legislation: Safeguard essential telecommunications assets to ensure resilience and reliability.

    “Reducing the tax burden on the mobile sector: Address high taxation to encourage further investment in infrastructure.

    “These recommendations are based on successes in other Sub-Saharan African markets, such as Kenya and South Africa, where similar policy reforms have proven effective in driving digital inclusion and fostering economic growth.

    “The GSMA remains committed to supporting the government, regulators, and industry stakeholders to implement these measures.”

  • Subscribers kick as NCC okays 50% tariff hike for telcos

    Subscribers kick as NCC okays 50% tariff hike for telcos

    Nigerians are to pay more for data, calls and Short Message Service (SMS), following the 50 per cent hike in end-user tariffs approved for service providers by the Nigerian Communications Commission (NCC) yesterday.

    The nod, which was half of the Mobile Network Operators’ (MNOs’) demand, came shortly after a virtual meeting of Industry Consumer Advisory Forum (IACF), which is an advisory body of the NCC.

    The meeting, which had in attendance the Minister of Communication, Innovation and Digital Economy, Bosun Tijani, began 10.30am and lasted till 12.25pm.

    But, subscribers kicked against the hike, which they described as an overkill.  

    ICAF provides recommendations on issues affecting consumers of ICT.

    The increase followed a persistent push by MNOs and other stakeholders for the government to consider the inflation rates in the country and give approval for 100 per cent adjustment of the tariff on data, calls and SMS messages.

    The MNOs argued that the withdrawal of petrol subsidy and the devaluation of the naira have precipitated an increase in the cost of services within the industry and other market realities.

    NCC said it granted the approval “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.

    “The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”

    In a pushback, both the Association of Cable Tvs, Internet and Telecom Subscribers of Nigeria (ATCIS-Nigeria) and the National Association of Telecom Subscribers of Nigeria (NATCOMS) outright rejected the hike, describing it as insensitive to the plight of struggling Nigerians whose fortunes had declined owing to soaring inflation and fuel subsidy removal.

    NATCOMS has resolved to file a fresh suit in court to challenge the “outrageous” hike.

    They blamed minister Tijani for approving the 50 per cent hike.

    A statement by NCC’s Director of Public Affairs, Reuben Muoka, said: “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.

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

    “Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment 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.

    “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.

    “Recognising the concerns of the public, this decision was made after extensive consultations with key stakeholders across the public and private sectors.

    “The NCC has prioritised striking a balance between protecting telecom 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. To this end, the commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers.

    “Operators are also required to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery.

    “Additionally, the NCC reaffirms its dedication to fostering a resilient, innovative, and inclusive telecommunications sector.

    “Beyond protecting consumers, the Commission’s actions are designed to ensure the long-term sustainability of the industry, support indigenous vendors and suppliers, and promote the overall growth of Nigeria’s digital economy.

    “As a regulator, the NCC will continue to engage with stakeholders to create a telecommunications environment that works for everyone—one that protects consumers, supports operators, and sustains the ecosystem that drives connectivity across the nation.”

    ATCIS-Nigeria President, Sina Bilesanmi, who said he attended the ICAF meeting, rejected the hike, describing it as punitive at a time the average Nigerian was struggling to cope with high prices of everything.

    He said the original plan was to effect the tariff hike on January 5 were it not for the vigilance of ATCIS-Nigeria.

     “We are shocked by the high percentage of the increase approved by the minister. We reject it because we are sure it will hurt our members,” he said.

    NATCOMS President Deolu Ogunbanjo described the minister’s action as provocative and smack of insensitivity to the yearnings of the people.

    According to him, the expectation was for a marginal hike of between five and 10 per cent, arguing that reaching for 50 per cent was overkill.

    He admitted that there was need for a marginal hike going by what the MNOs and other experts were saying about the state of health of the industry.

    “But, not the magnitude approved by the government”, Ogunbanjo said.

    He added: “Our members whose shops are online will suffer a sharp increase in their cost of operation. Many may close shops. It is really sad.

    “We are already in court but we will file a fresh action in court challenging this disproportional hike.”

    Association of Telecom Companies of Nigeria (ATCON) President Tony Emoekpere, said the 100 per cent hike demanded by the telcos appeared high because it had been a long time since an adjustment had been made on tariffs.

    He said: “The main challenge is that this issue has been left for too long. That is why a 100 per cent increase appears to be a lot. Considering the prevailing situation, it is not as much as it looks,” he wrote in a WhatsApp conversation.

  • Subscribers mount pressure against telecom tariff hike

    Subscribers mount pressure against telecom tariff hike

    • Balancing tariff with affordability

    Subscribers at the weekend faulted the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, for saying the industry will witness a hike of between 30 per cent and 60 per cent in end user telecom tariffs.

    They said the minister’s statement was contrary to the agreements reached between the Consumer Bureau Department of the Commission Nigerian Communications Commission (NCC) and stakeholders at a meeting convened on January 9, 2025 at the NCC headquarters in Abuja.

    The subscribers, acting under the aegis of Association of Telephone, Cable Tv and Internet Subscribers of Nigeria (ATCIS-Nigeria), also said the minister has no power to fix price in a liberalised market.

    President of ATCIS, Sina Bilesanmi, said tariff hike was not one of the issues agreed upon with the regulator in Abuja, wondering why the minister is interested in hiking tariffs to the detriment of struggling Nigerians still reeling under the impact of economic reforms.

    According to him, what was agreed upon at the January 9 Abuja meeting was that there will be no telecoms tariff hike for now until all the stakeholders, particularly the subscribers, are sufficiently enlightened and sensitised.

    Tijani, in a television interview, had said even though the mobile network operators (MNOs) are saying a 100 per cent increase is what is needed to stabilise the sector, the government knows that such a level of increase will be harmful to the people.

    On the threshold of the expected hike, he said: “I think it should not be more than anywhere between 30 to 60 per cent.”

     “We have already made it clear that we are not going to approve 100 per cent. These companies are asking for 100 per cent, stating clearly that this is what they believe they need to get.

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     “But what we are looking at in terms of the sector is that if this is the sector that is responsible for driving growth in our country, it will be harmful to our people to allow MNO to increase by 100 per cent.”

    But Bilesanmi said it was not the duty of the minister to speak to telecom sector pricing, a delicate area in which the NCC employs consultants to do data based empirical cost analysis.

     “We agreed at the meeting that there will be no hike but a further deliberation on the issue with relevant stakeholders, especially the MNOs and the subscribers.

     “The MNOs, through their representatives (ATCON and ALTON) were supposed to organise an enlightenment/sensitisation programme to address the issues. The MNOs were supposed to discuss the percentage increment with the subscribers’ representatives after which it will be taken to the subscribers for discussion. At the end of the meetings, we were expected to communicate an equilibrium price (a fair price agreeable to all) to the NCC for final approval,” he said.

    According to Bilesanmi, any tariff hike will do more harm than good to the subscribers at a time they are struggling to cope. “It will further impoverish our members, especially small business owners whose offices and shops are their mobile phones and laptops. A hike in voice and data prices without recourse to the subscribers will spell doom for their business,” he said, adding that it might slow down the gains of the government’s digital economy’s ambitions.

    President, National Association of Telecom Subscribers of Nigeria (NATCOMS), Deolu Ogunbajo, had rejected the tariff hike.

     “This Association sees the increment as an official policy to price telecoms services out of the reach of generality of the citizens of this country. Telecom services are taxable services under the Value Added Tax Act. The Act was amended in 2019 by the Finance Act of that year to raise the tax rate from five per cent to 7.5per cent which was 50per cent increment and the increment has been borne by the consumers of rateable Telecom Services. That increment brought about untold hardship to our members, many of whom have been forced to cut back on their Telecommunication requirements.

     “As if that was not bad enough, the Federal Government got the National Assembly to enact the Finance Act of 2020. Section 37 of the Act amended Section 21 of the Customs, Excise Tariff etc. (Consolidation) Act by imposing an excise duty charge on telecommunication Services. The then president, President Muhammadu Buhari by an order prescribed five per cent as the rate of the excise duty charge, chargeable for telecommunication services,” Ogunbanjo had said in a statement.

    CEO, 9mobile, Obafemi Banigbe, said there is a need to balance tariff hike with affordability.

    Banigbe said: So I would not necessarily focus on what percentage is better, whether it’s 100per cent or whether it is 30 or 40 or 60 or 70 per cent. The most important thing is that we need to look at the pricing regime where we are in. We know that our market is regulated. So because our market is regulated, we need to start thinking around the whole concept of market-reflective tariff, which is reflecting the realities on the ground, which will balance the need for sustainability and with the concern for affordability that our customers out there are concerned about.

     “So, affordability will then remain a concern in defining how we put up a price point that is market-reflective, that is also able to allow us to generate enough cash flow to cover our costs and to reinvest in the business. So, from the policymaker point of view as well, I’m sure they are also considering the concept, the whole idea of affordability. And I’m sure that’s one of the reasons why government has really dragged its foot in being able to address this whole conversation around tariff increase.”

    Airtel Nigeria CEO, Dinesh Balsingh said the adjustments will directly enhance the quality of connectivity for Nigerians, saying the focus is to ensure that no one is left behind in the country’s digital transformation journey.

    He said the tariff hike is  in response to the economic realities of rising operational and capital costs, saying the proposed tariff adjustments aim to ensure the long-term sustainability of the sector while unlocking significant benefits for consumers.

     “For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300 per cent in the last 18 to 24 months alone. To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities.

     “By enabling us to expand coverage, strengthen network security, and introduce cutting-edge technologies, the adjustments will directly enhance the quality of connectivity for Nigerians. Our priority is to ensure that no one is left behind in the country’s digital transformation journey.

    “The increasing demand for digital services across sectors such as education, banking, and healthcare requires us to continually upgrade our networks to deliver more capacity and improve service quality. These investments come at a cost, one that must be shared proportionally to guarantee long-term viability.”

    The tariff adjustments will not only ensure the sector’s sustainability but also bring significant improvements to service delivery, he said.

    Tariffing could be a double edged sword that requires a thorough and careful handling.

    According to a study conducted by telecom industry body, the Global System for Mobile Telecommunications Association (GSMA) entitled: “The role of mobile technology in driving the digital economy in Nigeria”, the Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE) Strategic Plan 2023 –2027 articulated a clear ambition for digitalisation and provides a comprehensive programme and set of targets.

    This recognises the role that digitalisation can have in economic growth, job creation and increased tax revenues across the economy.

    The adoption of digital technologies by individuals and businesses has been shown to enhance productivity and raise household incomes.

     “Consumers in Nigeria would benefit from increasing adoption and use of digital technologies. The faster the rate of digital adoption in Nigeria, the more quickly and extensively the country will benefit from these effects. The mobile telecoms sector accounted for 13.5per cent of total GDP in 2023, including the direct value added by wider ICT industries and the impact of the sector in enhancing the productivity of other sectors.

     “Overall, the mobile sector’s total contribution to GDP is estimated at 33 trillion NGN in 2023, with N2.4 trillion in tax revenue contributions. A successful digital economy would have a material impact on the economy of Nigeria over the next 3-5 years. It is estimated that growth in digitalisation in agriculture, manufacturing, transport, trade and government will result in an increase in GDP of around 2 percentage points by 2028. This would also create nearly 2 million jobs and raise an additional N1.6 trillion in tax revenue,” the GSMA report noted.