Revealed! NCC sets limits on tariff plan MTN, Glo, others can offer

• There are currently 369 telecomm tariff plans that the Nigerian Communications Commission is trying to simplify to help subscribers make wise decisions
• According to the statement, each operator may only provide 100 packages and seven pricing variations beginning on or before December 31, 2024.
• According to the NCC, telecomms converted promotions into tariffs, which now account for a significant portion of tariffs, hence causing confusion to subscribers

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

To assist customers in making wise choices, the Nigerian Communications Commission (NCC) is working to streamline over 369 current telecomm tarif plans.

The NCC wants all bonuses to comply with established price floors and caps to protect consumers. Photo Credit: Fizkes
Source: Getty Images

The NCC seeks to implement a similar change, taking inspiration from India's Telecom Regulatory Authority (TRAI), which in 2004 limited telecom providers to no more than 25 tariff choices in an effort to improve billing transparency.

“The major reason for initiating this consultation process was that the service providers have been offering a large number of tariff plans, and there were reports that this was confusing consumers and affecting their ability to make informed choices,” TRAI said in 2004.

The NCC stated that it is now necessary to cap tariff plans in regard to India's plan.

“Similar to the India experience, the commission has placed a limit on the number of tariff plans an operator can offer at any given point in time,” the NCC noted.

Only 100 bundles and 7 tariff plan proposed

The NCC's "Guidance on the Simplification of Tariffs in the Nigerian Communications Sector" states that, starting on or before December 31, 2024, each operator may only have 100 bundles and seven pricing options.

BusinessDay reported that this action, which was started in July, aims to increase clarity and lessen tariff complexity.

The NCC claims that telcos transformed promotions into tariffs, which now make up a sizable amount of tariffs.

Aminu Maida, executive vice chairman of the NCC, explained during the 93rd Telecoms Consumer Parliament,

“To address tariff complexity, NCC issued a Guidance on Tariff Simplification, requiring operators to provide clear, accessible information on data plans and pricing. This transparency will empower consumers to make better-informed decisions about their data usage and billing.”

Operators to provide clear billing rates

In order to comply with this instruction, operators will provide customers with tables that include all terms and conditions, billing rates, and tariff plans in the upcoming months, he said.

The advantage of more straightforward and uncomplicated data plans was emphasized by Gbenga Adebayo, the chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON).

One major concern for the NCC is the confusion caused by the difference between tariff rates for promotional and regular plans.

“What happens is that someone subscribes to a promo that promises them three times more. But what they don’t know is that the promo is charged at a higher rate than their normal billing rate, causing confusion when the airtime finishes quickly,” one NCC official explained.

To protect consumers, the NCC wants all bonuses to comply with established price floors and caps, with clear advertising of bonus allowances (voice, data, and SMS) in specific terms, such as naira, minutes/seconds, or gigabytes/megabytes. Operators must also notify customers of any changes to their tariff plans at least 30 days in advance and offer alternative options.

NCC places age limit to purchasing SIM cards

Legit.ng reported that The Nigerian Communications Commission (NCC) has restricted Nigerians below 18 years from purchasing SIM cards.

According to reports, the policy aims to protect minors from liabilities arising from using SIM cards.

The report quoted a senior official of the NCC as saying that parents and guardians can acquire SIMS in their names for their children and wards and assume responsibilities or liabilities from using such SIMs.

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Source: Legit.ng