Champion Newspapers LTD
InfotechLatest news

Telephony: Consumers to pay more as FG approves 50% increase in cost of phone calls, SMS

…As NCC rejects 100% hike requested by telecom operators

.. Says “we must protect Nigerians”.

…Expect further increase in food inflation on account of hike in telephone tariff–Experts

Blessing Taiwo
The Nigerian Communications Commission (NCC) has approved a maximum of 50% increment in telecommunications’ tariffs.
This was contained in a statement signed Reuben Muoka, the NCC Director of Public Affairs on Monday.
Telecommunications companies had requested for approval of over 100% tariff hike due to rising operational costs. This implies significant increase in phone call, SMS and data rates.
The commission stated that the adjustment was arrived at, considering ongoing reforms in the industry to positively influence sustainability.
According to NCC, the approved adjustment is aimed at addressing the gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators.
“These 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. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.
“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,” the regulator assured.
The NCC noted that it prioritises striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, hence its decision after extensive consultations with stakeholders across the public and private sectors.
It, however, directed telecom operators to implement the price increments transparently and fairly to consumers, as it recognises the financial pressures faced by Nigerian households and businesses.
The NCC reaffirmed its commitment to fostering a resilient, innovative, and inclusive telecommunications sector for the development 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,” it concluded.

 

Meanwhile, Some financial experts have said that the inflation rate may decrease in the coming months if factors such as energy prices and security improve.

Nigeria’s headline inflation rate dropped to 34.80 per cent in December 2024, despite seasonal consumption increases, particularly in food,

overlay-cleverThe experts explained that December’s inflationary spike aligns with historical trends, where higher consumption levels especially during the festive period tend to drive up prices.

Nigeria’s headline inflation rate saw a slight increase, reaching 34.80 per cent in December 2024, according to the National Bureau of Statistics (NBS).

This represents a modest rise of 0.20 per cent compared to the 34.60 per cent recorded in November 2024, largely driven by heightened demand for goods and services during the festive season.

Additionally, the December 2024 inflation rate was 5.87 per cent higher than the 28.92 per cent recorded in December 2023.

The experts noted, however, that challenges such as rising food prices and proposed telecom tariff hikes could hinder progress in the short term.

Reacting to the figures, Nigeria’s first Professor of Capital Market, Professor Uche Uwaleke stated that the drop in inflation was not unexpected.

However, he expressed optimism about the trajectory of inflation in the coming months, asserting that the December figure of 34.80 per cent likely represents the peak.

Looking ahead, he anticipated that Nigeria’s inflation rate for January 2025 would show a decrease compared to December, driven by lower consumption levels post-festivities and a favorable base effect from the previous year.

He also suggested that this decline could signal the onset of disinflation, a trend where inflation gradually slows down.

The shift, according to Uwaleke, may lead to a change in the Central Bank of Nigeria’s (CBN) current monetary policy stance, which has been focused on tightening to control inflation.

Related posts

N’Delta women, CSOs protest in Rivers

Editor

2025 Budget Proposal: FEC’s N1,400 to $1 exchange rate unrealistic – Expert

Editor

Ademola Igbalajobi Advocates Tech-Driven Innovation in Real Estate and Financial Services 

Editor