Why Nigerians must create value to prevent telecom tariff increase – NCC

Bisola David
Bisola David
Active mobile subscriptions fall to 220.71m in August - NCC

The Nigerian Communications Commission has stated that the only option to stop telecom tariff increases is for Nigerians to start producing domestic content that will improve telecom services and decrease importation.

During the second Nigerian Telecommunications Indigenous Content Expo, the Executive Vice Chairman of the Commission, Prof. Umar Danbatta, observed that despite increased expenses and currency instability, telecom pricing in Nigeria has remained consistent.

However, he pointed out that if all telecom service components were still imported, a rise in prices would be unavoidable.

The EVC stated: “Over the years, the quality of service and quality of experience in telecom service have increased.

“It is important to note that while the quality of service and the customer experience in Nigerian telecoms services have improved consistently, rates have remained unchanged despite an increase in the cost of service supply to the telecom operators.

“Indigenous content and value creation within the telecoms value chain must be embraced if we are to sustain and further improve quality of service and quality of experience in Nigerian telecommunications services; otherwise, a rise in telecoms tariffs will be inevitable.

Danbatta reaffirmed the Commission’s dedication to the Federal Government’s initiative to elevate the Nigerian economy via all the necessary policies put in place.

In order to implement the National Policy for Promotion of Indigenous Content in the Nigerian Telecommunications Sector, he claimed that the NCC established the Nigeria Office for Development of Indigenous Telecoms Sector as a Special Purpose Vehicle under the Commission in July 2021.

The NODITS was allocated four areas of focus, according to the NCC chairman, including manufacturing, human capacity, research and development, and software and service development for the telecoms industry.

“Today, I’m pleased to share with you that NTICE is one of NCC’s accomplishments through NODITS because it not only served to promote Pillar No. 5 (Strategic Partnering) of the Strategic Management Plan SMP 2020–2024 of the Commission but has also evolved into the event’s marquee indigenous content event for the industry.

He added that the production of a corrugated optical duct, which will be used to shield our fibre infrastructure from the constant cuts encountered by our service providers, has also been encouraged by the Commission.

“The Commission is equally dedicated to consistently assisting micro, small, and medium enterprises and innovators to market our bright young people and initiatives through angel investments, R&D support, investor exposure, and sponsorship of national and international tech events.”

He also claimed that the restriction on the importation of whole-body SIM cards, which was announced at the first NTICE event last year, is another important accomplishment of our policies.

“This prohibition has not only alleviated the pressure on our need for foreign currency but has also generated more than N55 billion in commerce for the local SIM card manufacturers in Nigeria, which in turn has created direct and indirect jobs,” he said.

Telecom companies in Nigeria have been pleading for higher pricing since last year as a result of rising costs. However, the telecom regulator has stopped them from making any increases, claiming that there isn’t yet enough evidence to support them.


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