The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to telecommunications operators in Nigeria, emphasizing a “zero tolerance for network blackouts” following the recent approval of a 50% increase in telecom tariffs by the Nigerian Communications Commission (NCC). The FCCPC stressed that this tariff adjustment must translate into tangible improvements in service quality, particularly in areas such as network reliability, speed, accessibility, and customer service.
On January 20, 2025, the NCC approved a 50% increase in telecommunications tariffs, marking the first such adjustment since 2013. This decision was driven by rising operational costs faced by telecom operators, including inflation and the need for infrastructure investments. The approved increase is a compromise from the more than 100% hike initially proposed by operators, reflecting a balanced approach to support industry sustainability while considering consumer interest.
In response to the tariff hike, the FCCPC emphasized that any additional revenue generated must be allocated to enhancing service quality. The Commission highlighted persistent consumer concerns such as network congestion, dropped calls, inconsistent internet speeds, and poor customer service. It is imperative that the tariff adjustment leads to measurable improvements in these areas.
The FCCPC outlined several key expectations for telecom operators:
Transparency: Operators are required to provide clear, upfront information on tariffs, including pricing details, validity periods, and specific plan inclusions. This initiative aims to reduce consumer confusion and ensure informed decision-making.
Service Improvement: The Commission stressed that the tariff increase must result in visible and measurable enhancements in network reliability, speed, accessibility, and customer service. Operators are expected to prioritize these improvements as part of any tariff adjustment.
Infrastructure Investment: Operators are expected to allocate increased revenues responsibly, focusing on infrastructure development and service delivery improvements. Clear mechanisms must be established to monitor how these funds are utilized, ensuring that consumers directly benefit from the adjustments.
The FCCPC, in collaboration with the NCC, has signed a Memorandum of Understanding (MoU) to ensure robust consumer protection, fair competition, and the eradication of exploitative practices in the telecommunications sector. This partnership aims to oversee the implementation of the tariff adjustment, ensuring that it meets the needs of consumers and does not become a justification for exploitative practices.
The FCCPC encourages consumers to report any unfair practices or concerns through its official channels to ensure effective resolution. The Commission is committed to closely monitoring the impact of the tariff adjustments to ensure compliance with established regulatory standards and to address consumer concerns during this transition period and beyond.
The FCCPC’s warning to telecom operators underscores the Commission’s commitment to ensuring that the recent tariff increase translates into tangible benefits for consumers. By prioritizing service quality, transparency, and infrastructure investment, the FCCPC aims to foster a telecommunications environment that balances industry sustainability with consumer protection. Operators are reminded that any failure to meet these expectations will not be tolerated, and the Commission will take appropriate regulatory actions to safeguard consumer interests.