By Toby Prince

In the heart of Nigeria’s digital economy, a story of patriotism and resilience unfolds. The telecommunications sector, a driving force behind the country’s growth, has been facing unprecedented challenges. Despite its significant contributions to Nigeria’s social and economic development, the sector has been struggling to keep up with the rising costs of operations.

For nearly a decade, telecom tariffs in Nigeria remained unchanged, while the demand for data and voice services skyrocketed. The cost of operations, however, surged due to rising energy costs, inflation, currency devaluation, and increased costs of importing telecom equipment. These mounting expenses threatened the very foundation of the sector, making it difficult for operators to maintain infrastructure and deliver high-quality services.

In the face of these challenges, telecom operators requested tariff adjustments to reflect the current cost of delivering services. The Nigerian Communications Commission (NCC) carefully considered these proposals, balancing the needs of operators with the interests of consumers. Instead of approving the suggested 100% rate increase, the NCC authorised a maximum adjustment of up to 50% within the current tariff bands.

The NCC plays a vital role in regulating the telecommunications industry in Nigeria, and its actions are guided by the Nigerian Communications Act of 2003. This act empowers the body to regulate and approve tariff rates and charges by telecom operators, ensuring a balance between consumer protection and industry sustainability.

The NCC’s decision to approve tariff adjustments was not taken lightly. It was based on extensive consultations with stakeholders from both the public and private sectors. The goal was to strike a balance between the financial realities of telecom operators and the economic pressures faced by Nigerian households and businesses.

The approved tariff adjustments were capped at 50%, significantly lower than the 100% increase requested by operators. This decision showcases the NCC’s commitment to creating a telecommunications environment that works for everyone.

To further protect consumers, the NCC mandated telecom operators to implement the approved adjustments transparently and fairly.

Meanwhile, operators were also required to educate and inform the public about the new rates, ensuring customers are fully aware of any changes to their billing structures. Additionally, the NCC’s updated Quality of Service Regulations empower it to sanction operators who fail to meet their service obligations.

Nigerians need to understand that the recent tariff adjustments in the telecommunications sector are a necessary step towards ensuring the long-term sustainability of the industry. These adjustments will enable operators to invest in infrastructure upgrades and innovation, ultimately providing opportunities for local businesses to thrive.

A robust telecommunications sector is crucial for achieving Nigeria’s digital economy goals, including e-commerce growth, broadband penetration, and digital inclusion. The tariff adjustments will strengthen operators’ contributions to these objectives by providing connectivity to underserved and rural areas, driving innovation, creating jobs, and boosting economic productivity.

Since 2013, telecom operators have grappled with escalating costs without corresponding adjustments to the tariff rates they offered.

Without tariff adjustment, operators risk being unable to sustain their operations, leading to service degradation and potential job losses within the industry. This would increase the rate of unemployment in the country, contributing to the hardship the government has been fighting hard to eradicate.

The telecommunications sector is capital-intensive, requiring continuous investment in infrastructure to meet growing demand and improve service quality. The approved tariff adjustments will provide operators with the financial resources needed to invest in network expansion, upgrade existing infrastructure, and enhance customer service. This will ultimately benefit consumers by delivering better connectivity, reduced downtime, and wider network coverage.

It’s worth noting that the Nigerian Communications Commission’s (NCC) approval of tariff adjustments aligns with international best practices, ensuring Nigeria stays competitive in the global telecommunications landscape. By maintaining tariffs within the bands outlined in the 2013 NCC Cost Study, the Commission has ensured that the adjustments are both fair and evidence-based.

Furthermore, the NCC’s modest tariff adjustment was influenced by the financial strains that many businesses and households are experiencing. In the context of the broader economy, the long-term benefits of the slight increase in consumer bills far outweigh the immediate costs.

Benefits such as expanded coverage, improved network quality, and enhanced customer service will provide greater value to consumers, further ensuring they receive a greater telecommunications experience.

In other to mitigate the impact on vulnerable consumers, the NCC has mandated that operators simplify their tariff structures, and offer affordable plans that will be suitable to different income levels. Additionally, the Commission will continue to monitor the implementation of the adjustments to ensure compliance with its guidelines and protect consumers from exploitation. This action validates the Commission’s goal of ensuring that Nigeria remains at the forefront of digital innovation and connectivity in Africa.

As a regulator, it is obvious that the NCC is not only protecting consumers, but also supporting operators, indigenous vendors, and suppliers who form the pillar of the telecom industry. It is worthy of note to state that the adjustments have no relation to the ongoing tax reform conversation. This holistic approach ensures that the benefits of a thriving telecommunications sector are felt across all segments of society.

The tariff adjustments approved by the NCC are a necessary step toward addressing the financial and operational challenges faced by telecom operators.

Far from being complicit in any alleged exploitation, the NCC has demonstrated commendable patriotism and a deep commitment to balancing consumer protection with industry sustainability. The NCC’s actions in approving the tariff adjustments reflect patriotism and national progress at its finest.

By enabling operators to invest in infrastructure, improve service quality, and support indigenous businesses, the NCC is laying the foundation for a more robust and inclusive telecommunications sector that can measure up with its international counterparts all across the globe.

The adjustments are not merely a response to current market conditions but a forward-looking strategy that will ensure Nigeria’s telecommunications industry remains a vital driver of economic growth and digital transformation.

As Nigerians, it is very important to view these adjustments as a patriotic move by the NCC to secure the future of connectivity and development in the country.

The Commission’s action embodies transparency and accountability, and it serves as a reminder that effective regulation is not about appeasing one stakeholder group over another, but about creating an environment that works for everyone.

Through its efforts, the NCC is proving that a stronger, more sustainable telecommunications sector is not just a possibility but a reality within reach in no.

*Prince writes from Abuja.

Preamble

The Federal Ministry of Agriculture and Food Security (FMAFS) in collaboration with the National Identity Management Commission (NIMC), is introducing the National Identity Number (NIN) enabled farmer registry and Government 2 people (G2P) card initiative.

This project is designed to address the Federal Ministry’s immediate challenges of identity and authentication, required to deliver government services efficiently and accurately.

This initiative aligns with the government’s commitment in improving transparency, efficiency and ensuring inclusivity under the President’s Renewed Hope Agenda, of which food security is a primary objective. I

ts aim is to eradicate the challenges of FMAFS in efficiently delivering well-intended government programmes to the targeted citizens.

The Farmer Registry and Card Ecosystem

To this end the FMAFS, guided by Mr President’s circular on the use of National Identification Number (NIN) by all MDAs in the provision of government services to beneficiaries, has partnered with NIMC to leverage the National Identity Management System to power the Ministry’s farmer registry by the linkage of the NIN and attendant biometric identity data of each farmer to their farmland, as well as all necessary supporting data relating to that farmer, including the size of the holding, type of crops or livestock.

Connecting this NIN-backed registry to the G2P card will thereby allow for provision of targeted and ring-fenced aid to the farmers and other recipients of government benefits under the FMAFS programmes.

The G2P card ecosystem is an initiative that allows for the issuance of NIN-enabled cards by Federal Ministries, Departments and Agencies (MDAs), and enables the use of the card’s frontend by these MDAs for their respective programmes.

The key feature of the ecosystem is a biometrics card with multiple wallets that can provide verifiable identification and also process transactions without internet connectivity, allowing the Ministry to support beneficiaries in the most remote locations.

The card is unique to each citizen, and every Nigerian and legal resident is eligible to obtain it, banked or unbanked. The G2P card will be owned by and personalised to each MDA that adopts its usage.

By adopting this card, FMAFS is able to uniquely identify all farmers, provide multiple agriculture services through the card in a manner that eliminates risks and fraud and also provide end to end visibility within the agriculture value chain thus enabling scalability.

Agriculture services to be provided through the card include farmer financing, input distribution, farmland mapping linked to identity, extension services monitoring & evaluation and agency banking as well as multiple types of third- party services.

Within this framework, NIMC will provide the foundational identity ecosystem to FMAFS, who as the owner of both the farmer registry and G2P card scheme will provide government services via the issued G2P cards, tailored to the needs of the farmers supported by the Ministry at the national and sub-national levels.

The G2P card has a large capacity in-card chip that stores beneficiary identity, know your customer (KYC), picture, and fingerprints.

In addition, it has two applets and several wallets dedicated to multiple types of programmes, which provides needed flexibility and channels for multiple interventions to be implemented against the same unique identity.

This flexibility is required to address infrastructure challenges limiting identity verification and digital evidence of beneficiary access when implementing government programmes.

The G2P biometric cards are processed through a bespoke but interoperable biometrics Point of Sale (POS) acceptance device, which requires biometrics to access and operate. This technological approach allows the Ministry to better deliver services and programmes in any location regardless of infrastructure challenges.

The card will operate as a digital wallet/ prepaid card and it is tailored for government transactions such as subsidies, loans, welfare disbursement, pensions and other activities carried out by FMAFS.

NIMC’s role is to provide the ecosystem with foundational biometric identity in the NIN to ensure that the card and its attendant benefits are linked securely and accurately to the beneficiary and the beneficiary only. FMAFS retains their statutory rights and ownership of data generated.

With the G2P ecosystem, any programme implemented by the Ministry can now be administered independently and showcased through digitally enabled dashboards displaying key data on how each programmes have been efficiently implemented or otherwise.  

Conclusion

FMAFS and NIMC especially thank the press for their support thus far and looks forward to participating with the press in successfully implementing the FMAFS G2P Card project to the benefit of all Nigerians and residents.

In alignment with the Renewed Hope Mandate of President Bola Ahmed Tinubu, the National Identity Management Commission (NIMC) is proud to announce a strategic partnership with the Renewed Hope National Home-Grown School Feeding (RH-NHGSF) Programme.

This collaboration, fostered by Engr. Abisoye Coker-Odusote (DG/CEO of NIMC) and Princess Aderemi Adebowale, National Programme Manager, Renewed Hope National Home-Grown School Feeding Programme, will ensure that every school child is enrolled and assigned a National Identification Number (NIN).

This initiative is aimed at fostering inclusive access to the school feeding program, enhancing transparency, and promoting accountability.

Under this partnership, the NIMC will work closely with the RH-NHGSF Programme, which marks a pivotal step toward ensuring the effective implementation of the school feeding initiative of the Federal Government of Nigeria.

By integrating the NIN registration process into the school feeding program, the partnership underscores the Federal Government’s commitment to improving educational and nutritional outcomes for children while advancing the Digital Public Infrastructure in Nigeria.

The NIMC remains dedicated to leveraging its expertise in identity management to drive sustainable development and equitable access to essential services for all Nigerians.

The Nigerian Communications Commission (NCC), pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators, has granted approval for tariff adjustment requests by network operators in response to prevailing market conditions.

The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.

Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.

These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.

Recognising the concerns of the public, this decision was made after extensive consultations with key stakeholders across the public and private sectors.

The NCC has prioritised striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.

The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. To this end, the Commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers. Operators are also required to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery.

Additionally, the NCC reaffirms its dedication to fostering a resilient, innovative, and inclusive telecommunications sector. Beyond protecting consumers, the Commission’s actions are designed to ensure the long-term sustainability of the industry, support indigenous vendors and suppliers, and promote the overall growth of Nigeria’s digital economy.

As a regulator, the NCC will continue to engage with stakeholders to create a telecommunications environment that works for everyone—one that protects consumers, supports operators, and sustains the ecosystem that drives connectivity across the nation.