The Nigerian Communications Commission (NCC) has said it has not given approval for phone companies to raise their rates, after the Association of Licensed Telecommunication Operators of Nigeria proposed a 40 per cent rise in tariffs.
The commission said this in a statement signed by its spokesperson, Ikechukwu Adinde, on Friday.
Phone companies are seeking regulatory approval for increased rates on voice calls and text messages, citing energy and other rising costs caused by COVID-19 pandemic and the Russia/Ukraine war.
Last week, they submitted a letter to the NCC asking its authorisation to increase call rate from N6.4 to N8.95, and SMS fee from N4 to N5.61.
The NCC said in its statement that it has not granted approval and will first review cost-related issues raised by Mobile Network Operators (MNOs).
“The demand being made by MNOs under the auspices of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), citing high cost of running their operations as the major reason for their proposed tariff hike, is contained in a letter to the Commission,” it said.
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“Consistent with international best practice and established regulatory procedures, the NCC ensures its regulatory activities are guided by regular cost-based and empirical studies to determine appropriate cost (upper and floor price) within which service providers are allowed to charge their subscribers for services delivered.
“The Commission ensures that any cost determined, as an outcome of such transparent studies is fair enough as to enhance healthy competition among operators, provide wider choices for the subscribers as well as ensure sustainability of the Nigerian telecoms industry.”
The commission said no tariff increase will be effected by the operators without its approval .
“However, while there could be justifiable reasons for MNOs’ demand for tariff increase, it should be noted that they are not allowed to do such either individually or collectively without recourse to NCC, following the outcome of a cost study. This is not the case for now,” it said.
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