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The Federal Competition and Consumer Protection Commission (FCCPC) has warned telecom operators that the recent 50% tariff hike approved by the Nigerian Communications Commission (NCC) must result in better services for consumers, or operators will face penalties. The increase, effective from January 22, 2025, comes as a response to rising operational costs in the telecom industry, mainly due to inflation and the need for more infrastructure investment.
However, the FCCPC made it clear that the extra revenue from this increase should be used to address ongoing service problems, including network congestion, dropped calls, slow internet speeds, and poor customer service.
“The tariff increase must lead to real improvements in service quality,” said the FCCPC. It stressed that operators should not use the hike as a quick fix for financial issues without showing clear benefits to customers.
The 50% increase is a compromise from the 100% hike initially requested by telecom companies. The FCCPC supported the NCC’s decision, saying it strikes a balance between helping telecom companies stay financially stable and keeping services affordable for consumers.
Expectations for Improved Service
The FCCPC added that telecom operators now face the challenge of using the additional funds from the tariff increase to fix service delivery.
“Consumers are paying for more than just access to telecom services—they expect better quality. The money generated from this increase must be invested in better infrastructure and customer service,” the FCCPC said.
Transparency in Pricing
The FCCPC also welcomed the NCC’s new rule requiring telecom operators to be clear about their pricing. The rule mandates operators to provide full details of their tariffs, including prices, plan details, and validity periods, to avoid hidden fees and confusion among consumers.
But the FCCPC emphasized that transparency alone isn’t enough. It urged telecom operators to use the additional revenue to improve network reliability and customer support.
Monitoring and Action
The FCCPC said it would closely monitor the situation to ensure operators follow through on their promises to improve service. The FCCPC and the NCC have also signed a Memorandum of Understanding (MoU) to work together and keep telecom companies accountable.
“Operators must communicate clearly about how the tariff hike will benefit consumers,” the FCCPC stated. “Failure to do so will lead to further scrutiny and possible penalties.”
In conclusion, the FCCPC reminded telecom operators that the increased tariffs must lead to noticeable improvements in the services customers are receiving. If consumers don’t see benefits, the FCCPC won’t hesitate to take action.
