• Wednesday, January 22, 2025
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Tariff hike must come with better services, FCCPC tells telecoms operators

Tariff hike must come with better services, FCCPC tells telecoms operators

Federal Competition and Consumer Protection Commission (FCCPC)

The Federal Competition and Consumer Protection Commission, (FCCPC), has warned telecommunications operators in Nigeria to ensure that the recent 50% tariff increase by the Nigerian Communications Commission (NCC) results in improved services.

The NCC had announced a 50% adjustment in telecommunications tariffs. But the FCCPC in a statement issued by Ondaje Ijagwu, the Commission’s director Corporate Affairs on Wednesday, said that while the Commission acknowledges the economic pressures faced by operators, such as increasing operational costs, consumer interests remain paramount.

The FCCPC commended NCC for adopting an intentional and measured approach by rationalising the tariff adjustment and linking it to adequate improvements in service quality while implementing measures to lessen the impact on consumers.

The Commission said the Memorandum of Understanding (MoU) recently signed between the FCCPC and NCC highlighted the importance of strengthened consumer protection, fair competition, and the eradication of exploitative practices in the telecommunications sector.

Expressing consumers’ desire for measurable improvements in the quality of service before any tariff increases are implemented, the commission said: “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.

“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.”

Read also: Telcos’ tariff hike should not exceed 60% – Minister

The FCCPC also explained that the MoU reinforces the principle that any regulatory or pricing adjustment must balance the sustainability of the industry with the interests of consumers.

“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. The FCCPC assures the public that, together with the NCC, we will continue to pursue measures that uphold these objectives.

“The 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.

“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 statement added.

The consumer protection agency further praised the NCC for approving a 50% adjustment lower than the more that 100% increase initially proposed by operators, adding that it demonstrated a thoughtful effort to balance industry sustainability with consumer protection.

“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. 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”, the FCCPC added.

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