Nigerian consumer watchdog urges better telco service after tariff hikeNigerian consumer watchdog urges better telco service after tariff hike

Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) has demanded that a 50% tariff hike by telecoms operators be followed by improved network quality.

The announcement comes days after the Nigerian Communications Commission (NCC) approved a 50% increase in telecommunications tariffs.

The FCCPC said its expectation is non-negotiable and emphasized that consumers, who depend on telecommunication for personal and business needs, deserve tangible benefits in exchange for higher costs.

"While the FCCPC acknowledges the economic pressures faced by telecom operators, including increasing operational costs, we unequivocally state that consumer interests remain paramount," the FCCPC said in a statement.

The Commission added its demands were necessary to address the prevalent concerns raised by Nigerians, including issues like network congestion, dropped calls, inconsistent Internet speeds, unusual data depletion and poor customer service. 

"It is non-negotiable that telecom operators must prioritize 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 personal and business purposes," the FCCPC continued.

Related:Nigerian regulator approves 50% telecom tariff hike

FCCPC calls for transparency

Moreover, the FCCPC urged telcos to communicate the reasons for the tariff adjustments to consumers, ensuring they are fully informed about the nature of the changes, their benefits and how they align with efforts to improve service delivery and infrastructure.

 It added that the NCC's approval of a 50% adjustment, which was lower than the 100% increase initially proposed by operators, demonstrated a thoughtful effort to balance industry sustainability with consumer protection.

Following the NCC's approval of a 50% tariff increase, the FCCPC has called for this hike to be accompanied by noticeable and measurable improvements in network services. (Source: Image by aopsan on Freepik)

"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," it continued.

The watchdog said operators are now required to disclose all key details upfront, including the cost, validity period, and the specific inclusions of a plan.

The Commission urged providers to use increased revenues for infrastructure and service improvements and called for a monitoring mechanism to ensure funds benefit consumers.

The cause of the tariff hike

The 50% tariff hike comes as the Nigerian telecommunications industry faces mounting financial struggles on the back of the devaluation of the naira and increasing operational costs in the West African country.

Telecom operators such as MTN and Airtel had reportedly requested a 100% tariff increase, but the NCC said it capped the increase to a maximum of 50% of current tariffs. 

Over the past few years, currency devaluations and rising inflation in Nigeria have affected the earnings of MTN and Airtel, prompting a review of their tariffs.

In August 2024, the NCC denied rumors that it had approved higher telecom tariffs.

Nigeria has Africa's biggest mobile market with almost 140 million mobile subscriptions at the end of 2024, according to statistics from market research company Omdia.

This is despite declines over the past two years due to the deactivation of millions of unregistered SIMs to meet regulatory requirements.

Africa's most populous country has four key mobile operators, the largest being MTN with an estimated 78.1 million mobile users at the end of 2024.

Airtel had 52.1 million users, Glo Mobile had almost 8.6 million and 9Mobile had just 1.1 million, Omdia market intelligence shows.