Tariff Hike Not Justification For Exploitative Practices, FCCPC Warns Telecom Operators

The Federal Competition and Consumer Protection Commission on Wednesday warned telecom operators that the recent approval of a 50 per cent increase in tariff by the Nigerian Communications Commission should not be used as a justification for exploitative practices.

The FCCPC gave the warning in a statement issued on Wednesday and signed by the Director, Corporate Affairs, Ondaje Ijagwu.

It said that the hike in tariff should be seen as an opportunity to foster fairness, transparency, and accountability in the telecommunications sector.
The FCCPC in the statement noted the announcement by the Nigerian Communications Commission (NCC) approving a 50 per cent adjustment in telecommunications tariffs and acknowledged the economic pressures faced by telecom operators, including increasing operational costs.

However, it said despite the hike in tariff, the interest of consumers remain paramount.

It said, “The FCCPC acknowledges the intense pressure faced by the NCC over the years to approve tariff increases due to the rising operational costs experienced by telecom operators, which became more pronounced in recent times.

“We commend the NCC for adopting a deliberate and measured approach by rationalising the tariff adjustment and linking it to commensurate improvements in service quality while implementing measures to mitigate the impact on consumers.

“The NCC’s approval of a 50 per cent adjustment, which is lower than the over 100 per cent increase initially proposed by operators, demonstrates a thoughtful effort to balance industry sustainability with consumer protection.

“We are also pleased with the NCC’s directive to operators to ensure that, henceforth, tariffs are clear, straightforward, and free of hidden charges or complexities.

“Operators are now required to disclose all key details upfront, including the cost, validity period, and the specific inclusions of a plan.”

The FCCPC in the statement also said that consumers should be given a mandatory disclosure table from their service providers, enabling them to make informed decisions without worrying about unexpected charges or surprises.

While stating that consumers have consistently expressed the desire for measurable improvements in the quality of service before any tariff increases are implemented, it noted that issues such as network congestion, dropped calls, inconsistent internet speeds, unusual data depletion, and poor customer service have remained prevalent concerns.

The statement added, “It is, therefore, crucial that tariff adjustments directly translate into demonstrable and tangible service enhancements for consumers.

“The Memorandum of Understanding recently signed between the FCCPC and NCC highlights a shared commitment to ensuring robust consumer protection, fair competition, and the eradication of exploitative practices in the telecommunications sector.

“It reinforces the principle that any regulatory or pricing adjustment must balance the sustainability of the industry with the interests of consumers.

“It is non-negotiable that telecom operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment.

“The rationale for the increase must be reflected in better services for consumers who rely on telecommunications for both personal and business purposes.

“Operators are expected to allocate increased revenues responsibly, with an emphasis on infrastructure development and service delivery improvements.

“Clear mechanisms must be established to monitor how these funds are utilised, ensuring that consumers directly benefit from the adjustments.”

The FCCPC also urged operators to clearly communicate the rationale for the tariff adjustments to consumers.

This, it noted, includes ensuring that consumers are fully informed about the nature of the changes, their benefits, and how they align with efforts to improve service delivery and infrastructure.

“The MoU between the FCCPC and NCC provides a unified framework to oversee the implementation of this tariff adjustment in a manner that meets the needs of consumers.

“The partnership ensures that the increase does not become a justification for exploitative practices but rather an opportunity to foster fairness, transparency, and accountability in the telecommunications sector.

“As Nigeria embraces rapid technological advancements and increasing reliance on digital connectivity, it is imperative that the benefits of a thriving telecommunications ecosystem extend to all stakeholders, particularly consumers,” the statement added.

It expressed commitment to closely monitoring the impact of these tariff adjustments to ensure compliance with established regulatory standards.

“Operators are reminded that the FCCPC is actively working with NCC to address concerns that may be raised by consumers during this transition period and beyond.

“The Commission encourages consumers to report any unfair practices or concerns through its official channels to ensure effective resolution,” the statement concluded.

ENDS

Tariff Hike Not Justification For Exploitative Practices, FCCPC Warns Telecom Operators is first published on The Whistler Newspaper