The impacted Mobile Network Operators (MNOs) have been ordered by the Federal Government to reverse the arbitrary upward pricing hikes.
The directive was issued by the Nigerian Communications Commission (NCC) in a letter dated October 12 in response to media reports of the recently approved 10% upward pricing increases being implemented unilaterally.
The service providers’ networks received the changes for a few voice and data services.
Dr. Reuben Muoka, Director of Public Affairs of NCC, said this in a statement on Wednesday in Abuja.
According to Muoka, the consideration for a 10% approval was in line with the commission’s duties as set forth in the 2003 Nigerian Communications Act.
He added that it was in accordance with other current regulations and guidelines because it was under the guidelines for the industry’s established price floor and price ceiling.
He claimed that because it has an impact on all areas of the economy, the decision was made after a careful and realistic examination, analysis, and review of the operating environment and the current business climate in Nigeria.
“The tariff adjustment was proposed and provisionally approved by the management, pending the final approval of the Board of the Commission.
“However, in the end, it did not have the approval of the Board of the Commission. As a result, it is reversed,” he said.
He claimed that Prof. Isa Pantami, Minister of Communications and Digital Economy, had insisted that protecting citizens and ensuring justice for all parties concerned was his top priority.
According to the minister, anything that may cause further suffering at this crucial time will not be accepted, the speaker quoted.
“This was also why he obtained the approval of President Muhammadu Buhari for the suspension of the proposed 5 per cent excise duty, in order to maintain a conducive enabling environment for the telecom operators.
“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.”
He stated that in light of the foregoing, the Commission would hold more consultations with all industry players to determine the best ways to safeguard and uphold the interests of both consumers and service providers.
“The commission will continue to entrench very transparent processes and procedures for rates determination in the industry.
“The process is usually carried out with wide industry consultation.
“It is through these processes that price floors and price caps for data and voice services are benchmarked, regularly reviewed, and determined from time to time.
“The commission will continue to abide by this time-tested process and international best practice to ensure efficient pricing mechanism for the telecommunications industry in Nigeria,” he said.
