Tariff Hike: Is NCC in Position to Negotiate Prices for Consumers?

By Zekeri Idakwo Laruba

The recent approval of a 50% telecom tariff increase by the Nigerian Communications Commission (NCC) has sparked widespread debate. With the rising cost of living already straining household budgets, many Nigerians are questioning whether the NCC, as a government agency, is truly in a position to negotiate telecom prices in the best interest of consumers.

Before delving deeper into the issue, it is important to define the consumer within the telecom sector. A consumer is anyone who seeks or acquires goods or services for personal, family, or household use. In this case, it refers to the millions of Nigerians who depend on mobile networks for communication, business, and daily activities. Given their direct financial stake in telecom pricing, one would expect consumers to be consulted before significant price adjustments. However, there is little evidence that this was the case with the recent tariff increase, raising concerns about transparency and fairness.

As the regulatory authority overseeing Nigeria’s telecommunications industry, the NCC is tasked with ensuring fair competition, enforcing industry standards, and protecting consumer interests. However, there is a growing perception that its decisions often favor industry profitability over consumer welfare.

One major concern is that the NCC, as a government agency, must balance regulatory oversight with broader economic and political considerations. This raises a critical question: can a government entity, which must also account for tax revenues and economic policies, truly function as an independent negotiator for consumer-friendly pricing?

The circumstances surrounding the tariff hike have fueled speculation of undue influence from telecom operators. For years, telcos have lobbied for higher tariffs, citing inflation, rising operational costs, fuel subsidy removal, and currency devaluation. While these are valid business concerns, there is little indication that the NCC conducted direct consultations with consumer advocacy groups or the general public before approving the hike.

A decision of this magnitude, which directly affects millions of Nigerians, should involve transparent engagement with all stakeholders. However, reports suggest that discussions primarily occurred between telecom operators and regulatory agencies, leaving consumers without a voice in the process. This exclusion raises fears that industry lobbying, rather than consumer welfare, played a significant role in the NCC’s decision.

The tariff increase has also taken on a political dimension, with various interest groups positioning themselves as defenders of consumer rights. While the NCC argues that the price adjustment is necessary for industry sustainability, the timing—amid worsening economic hardship—has fueled public outcry.

For instance, the Nigeria Labour Congress (NLC) has threatened nationwide protests against the proposed hike. While this agitation reflects public dissatisfaction, some analysts, such as public commentator Jimi Disu, suggest a more pragmatic approach—negotiating for a phased and moderate adjustment rather than outright rejection.

This raises another crucial issue: if neither the NCC nor the NLC is effectively negotiating on behalf of consumers, who should?

The controversy surrounding this tariff hike highlights a fundamental flaw in Nigeria’s telecom pricing system—the absence of an independent body to objectively negotiate and set tariffs. Currently, both the NCC and the Federal Competition and Consumer Protection Commission (FCCPC) are government agencies, creating a potential conflict of interest. As a result, both institutions may be influenced by political and economic pressures rather than being solely dedicated to consumer protection.

For a more balanced and transparent decision-making process, it is crucial to ensure that pricing discussions include consumers, industry players, and independent economic experts. A structured, data-driven approach to price regulation would help strike a balance between industry sustainability and consumer affordability. At the same time, greater transparency in pricing negotiations would help build trust and accountability within the system.

The recent tariff hike decision has reignited discussions about fairness and consumer rights in Nigeria’s telecom sector. While telecom operators argue that price increases are necessary, the lack of direct consumer consultation and the perception of industry lobbying raise serious concerns.

The NCC’s dual role as both regulator and negotiator presents a clear conflict of interest, reinforcing the need for an independent price negotiation body. If consumers are expected to bear the burden of rising telecom costs, they should also have a say in how these prices are determined. Otherwise, trust in regulatory institutions will continue to erode, and consumer dissatisfaction will persist.

Although MTN Nigeria’s CEO, Karl Toriola, has clarified that the tariff hike has not yet been implemented, the ongoing debate underscores the urgent need for a transparent and inclusive negotiation process. Rather than waiting for public backlash after enforcement, all stakeholders—including consumers—must be actively involved in discussions to ensure a fair and sustainable pricing framework. Without such a proactive approach, the telecom sector risks further public discontent and loss of trust.

As the debate unfolds and potential protests loom, one thing is clear: Nigeria needs a more transparent and consumer-inclusive approach to telecom pricing. An independent regulatory body, free from political and corporate influence, could be the key to ensuring fairer, more sustainable pricing for all.

Zekeri Idakwo Laruba is the Assistant Editor at Image Merchants Promotion Limited (IMPR). He can be reached at [email protected].