Costlier connections
A Lagos court has upheld the FCCPC's authority over MTN Nigeria amid a 50% telecom tariff hike.
The Federal High Court in Lagos ruled in favour of the Federal Competition and Consumer Protection Commission (FCCPC), affirming its authority over MTN Nigeria despite opposition from a shareholder, Emeka Nnubia. The court held that the FCCPA 2018 supersedes the Nigerian Communications Act 2003 concerning competition regulation. Meanwhile, telecom operators have begun implementing a 50% tariff hike, with MTN subscribers seeing increased data and SMS prices. The Nigerian Communications Commission (NCC) approved the adjustment, citing rising operational costs. Other providers, including Airtel, Globacom, and 9mobile, are expected to follow suit.
This ruling has significantly bolstered the FCCPC’s authority over competition and consumer protection within the telecommunications sector and established a critical legal precedent, clarifying that telecom companies are subject to broader regulatory oversight beyond the Nigerian Communications Commission (NCC). While the NCC remains essential for licensing and technical regulation, competition-related issues demand a more comprehensive approach to prevent monopolistic practices and safeguard consumer interests. By affirming the FCCPC’s right to investigate MTN, the ruling reinforces accountability in pricing strategies, service quality, and fair market competition.
However, this legal victory comes at a challenging time for Nigerian consumers, as telecom operators led by MTN have implemented a 50% tariff hike. Subscribers have already reported increased data prices, and other providers like Airtel, Globacom, and 9mobile are expected to follow suit pending final approval from the NCC. The price adjustment reflects mounting operational cost pressures driven by inflation, currency depreciation, and rising infrastructure expenses. The hike represents an additional financial strain for consumers already grappling with Nigeria’s worsening cost-of-living crisis. According to a survey by SBM Intel, airtime and data rank as the second most purchased items by Nigerians, highlighting their essential role in daily life and the disproportionate impact of such increases.
The financial challenges facing telecom operators are starkly evident in MTN Nigeria’s recent performance. The company reported a staggering loss after tax of ₦514.9 billion for the first nine months of 2024, a 3,335% increase compared to the ₦15.0 billion loss recorded during the same period in 2023. This dramatic decline is attributed mainly to naira depreciation, which significantly inflated the company’s foreign currency-denominated obligations. The deteriorating financial outlook likely influenced the NCC’s decision to approve the tariff hike—the first of its kind since 2013—as a means to help operators bridge the gap between rising operational costs and revenues while maintaining service delivery.
While Nigerians have every right to express frustration over the steep increases in call and data costs, the economic realities confronting telecom operators cannot be overlooked. The challenge now lies in ensuring that higher prices translate into tangible improvements in network quality, connectivity, and customer service. If consumers bear the brunt of increased costs without experiencing better services, the growing dissatisfaction could further erode trust between operators and their subscribers. Moving forward, regulators must strike a delicate balance—supporting the sustainability of the telecom industry while protecting consumers from excessive financial burdens. This will require robust oversight, transparent communication, and a commitment to fostering a competitive market prioritising industry viability and consumer welfare.