The Nigerian Communications Commission (NCC) has announced a major overhaul of the country’s telecom tariff structure, aiming to simplify over 369 existing plans and help consumers make more informed choices.
Drawing inspiration from the Telecom Regulatory Authority of India (TRAI), which in 2004 capped telecom operators at 25 tariff plans to improve billing transparency, the NCC has set a similar path for Nigeria’s telecommunications sector. “The major reason for initiating this consultation process was that the service providers have been offering a large number of tariff plans, and there were reports that this was confusing consumers and affecting their ability to make informed choices,” TRAI noted in 2004.
The NCC has introduced its Guidance on the Simplification of Tariffs in the Nigerian Communications Sector, limiting operators to a maximum of seven tariff plans and 100 bundles at any given time. This policy is set to take effect on or before December 31, 2024, following its initial introduction in July. The commission aims to reduce tariff complexity and enhance clarity for consumers.
The NCC identified the proliferation of tariff plans, often created from promotional offers later converted into permanent tariffs, as a major source of confusion. “To address tariff complexity, NCC issued guidance requiring operators to provide clear, accessible information on data plans and pricing,” said Aminu Maida, Executive Vice Chairman of the NCC, at the 93rd Telecoms Consumer Parliament.
Under the new framework, telecom operators will present tables detailing their tariff plans, billing rates, and terms and conditions. Additionally, operators must inform customers of changes to their plans at least 30 days in advance and offer alternative options.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), praised the initiative, stating, “With simplified tariffs, consumers can make more informed choices about which data packages best suit their needs, budgets, and usage patterns, empowering them to take control of their data experience.”
The NCC has also mandated transparency in promotional offers and bonus packages, which often carry hidden costs. For instance, promotional bonuses are frequently charged at higher rates than standard billing, leading to faster depletion of airtime. “What happens is that someone subscribes to a promo that promises them three times more. But what they don’t know is that the promo is charged at a higher rate than their normal billing rate,” an NCC official explained.
To address this, the commission requires all bonuses to comply with established price floors and caps. Bonus allowances must be advertised in clear, specific terms—whether in naira, minutes, seconds, gigabytes, or megabytes.
The NCC’s tariff reform is part of a broader agenda to enhance consumer satisfaction. However, Maida cautioned that challenges like vandalism and telecom asset theft, which cost the industry an estimated N23 billion in 2023, continue to strain service quality.
Additionally, the rising cost of doing business in Nigeria has impacted telcos’ ability to invest in infrastructure. Recent data shows that MTN Nigeria’s capital expenditure dropped by 27.79% to N217.64 billion, while Airtel Nigeria’s investment fell by 36.59% to $149 million in the first nine months of 2024.
The NCC has urged operators to align tariff changes and promotions with its Key Performance Indicators (KPIs) for Quality of Service (QoS). Any degradation in service quality must be addressed promptly to avoid further inconveniencing consumers.
Telecom operators are now tasked with launching educational campaigns to raise awareness about the simplified tariff structure and help subscribers make informed decisions.
As the December 2024 deadline approaches, the NCC is hopeful that its reforms will foster greater transparency, improve service delivery, and empower Nigerian telecom users to make better choices in a competitive market.
