Economy

NCC’s Tariff Adjustment Yields Improved Telecom Services, Sajoh Note

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NCC’s Tariff Adjustment Yields Improved Telecom Services, Sajoh Note

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By Emmanuel Kwada

The National Communications Commission (NCC) has been credited with driving improvements in Nigeria’s telecom services following a controversial tariff adjustment, with tangible benefits now evident in data-driven activities across urban and rural areas.

NCC Building, Abuja

Ahmad Sajoh, a public affairs analyst, shared insights from his recent experience in Mubi, Adamawa State, highlighting how enhanced telecom services have supported seamless transactions and connectivity.

When the NCC approved the tariff hike in 2023, it faced backlash from consumers who questioned its timing amid rising living costs. The regulator justified the move, citing the need for a cost-reflective tariff. The last adjustment was in 2013 when the minimum wage was N30,000 and fuel prices were lower. By 2023, the minimum wage had risen to N70,000, and costs for fuel, freight, and dollar-based equipment had surged due to exchange rate fluctuations. The NCC argued that without adjustments, service quality would stagnate.

Data is now the backbone of telecom services

A key promise tied to the tariff increase was improved service standards, a commitment many initially dismissed as rhetoric. However, Sajoh’s observations suggest otherwise. “Data is now the backbone of telecom services,” he noted, pointing to its role in powering cashless transactions, virtual meetings, and social interactions. From Point of Sale (POS) operations to Zoom calls and WhatsApp, reliable data has become critical, even in remote areas.

Vendors told me failed transactions are now rare

Sajoh’s recent trip to Mubi, prompted by a personal loss, provided an opportunity to assess telecom performance outside Abuja. He found significant improvements compared to previous visits. Banking apps worked seamlessly, POS transactions succeeded consistently, and video calls connected effortlessly. “Vendors told me failed transactions are now rare,” he said, a stark contrast to past challenges. Community condolence meetings held virtually also proceeded without hitches, underscoring the reliability of data services.

The four major service providers in Nigeria

Investigations into the reasons behind these improvements revealed multiple factors. The NCC mandated telecom providers to activate completed fibre optic lines across Nigeria, a directive that has boosted data speeds and reliability.

Additional facilities and cleared rights of way have further supported this rollout. Sajoh learned that in rural Adamawa, where grid power is scarce, providers are shifting to solar energy to reduce reliance on diesel generators, though backups remain necessary.

No provider wants to be left behind

The telecom sector’s dynamic nature also plays a role. With technology evolving from 2G to 5G, providers must continually upgrade infrastructure to match advancements in smartphones and software. “No provider wants to be left behind,” Sajoh said, commending the industry’s responsiveness. These upgrades, supported by the NCC’s regulatory oversight, have ensured Nigeria keeps pace with global standards.

Unless tariffs drop, I won’t appreciate the providers or regulator

Despite these gains, challenges persist. Some users still report poor voice call quality in certain areas, and power supply remains a hurdle in rural regions. Critics argue that tariffs should be lowered, with one individual telling Sajoh, “Unless tariffs drop, I won’t appreciate the providers or regulator.” Sajoh countered that the benefits of improved services outweigh modest tariff increases.

“Using my banking app at home saves me more than an Uber ride to the bank,” he explained.

The broader impact of enhanced telecom services is evident across sectors. POS operators, students attending online classes, businesses conducting virtual meetings, and online traders benefit from reduced costs compared to physical alternatives. Healthcare and other fields are also leveraging data for efficiency.

For instance, virtual consultations and training sessions are cutting travel expenses, while e-commerce reduces the need for physical shops.

Sajoh emphasized the importance of trust between the NCC, providers, and consumers. “The promise of better service must be upheld consistently,” he urged, noting that addressing remaining complaints, like voice call issues, is critical. He sees limitless potential in a reliable telecom ecosystem, from economic growth to social connectivity.

The NCC’s regulatory approach, coupled with providers’ investments, appears to be delivering results. As Nigeria’s digital economy grows, observers like Sajoh believe sustained improvements will justify the tariff adjustment, provided consumer needs remain at the forefront.

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