By Camillus Eboh
ABUJA (Reuters) – Nigeria’s telecoms regulator said on Thursday it had rejected a proposal by mobile operators to raise prices within an agreed band for voice and data services by 10% and had directed them to reverse any tariff adjustments.
Industry officials said some telecoms firms had increased prices for voice and data for some customers following provisional approval by the Nigerian Communications Commission’s management. But the regulatory authority’s board had rejected the proposed increase.
Businesses and households are grappling with rising costs as inflation, which hit a 17-year high of 20.77% in September, stokes an increase in production costs coupled with a hike in the costs of imports due to the weakness of the naira currency.
Most telecoms equipment is imported while services are priced in naira.
The NCC added that it would carry out consultations with the industry on the best way to protect consumers and providers. It said that it had asked the government to suspend a 5% excise duty hike to help keep a lid on rising costs.
“Much as there is an increase in the cost of production, the provision of telecom services is still very profitable and it is necessary that the subscribers are not subjected to a hike in charges,” the NCC said.
Major players in the Nigerian telecoms sector include South Africa’s MTN, India’s Bharti Airtel and two local operators: Globacom Limited and 9mobile.
MTN and Airtel were not available to comment.
A telecoms sector source said that voice and data services prices have not been adjusted since before the pandemic, prompting the request by mobile operators for an increase to cover their own costs.
(Writing by Chijioke Ohuocha; Editing by James Macharia Chege)
