NCC defends telecom charges, cites cost-based rate determination
The Nigerian Communications Commission (NCC) has stated that all telecom service rates are based on detailed cost analysis to ensure fairness and transparency in the pricing structure.
The Executive Vice-Chairman (EVC) of the NCC, Dr Aminu Maida, made this known during an interactive session with the Nigeria Information Technology Reporters’ Association (NITRA) held on Thursday in Abuja.
Dr Maida explained that the Commission plays a critical regulatory role in the telecommunications sector by ensuring that charges imposed by service providers are justifiable and tied to the actual cost of delivering the services.
“Rates are not arbitrarily decided,” he said. “We conduct a comprehensive cost study to determine the actual cost of providing each service.”
Addressing questions around the N6.98 Unstructured Supplementary Service Data (USSD) charge deducted from users' airtime, Maida clarified that such rates result from careful analysis, not guesswork.
“You ask where the figure comes from, it is not randomly chosen,” he said. “Before any rate is approved, we undertake a full cost study to assess what it truly costs to deliver that service. This is what we’ve done for USSD charges, and we are currently concluding another detailed cost analysis. Once that is done, we will make a formal determination based on all relevant cost elements.”
He noted that the study accounts for several factors including infrastructure, maintenance, and personnel costs. He reiterated that in a liberalised telecom sector like Nigeria's, any tariff must reflect real service delivery costs to avoid arbitrary pricing.
“While consumers may not sit at the table when rates are being determined, their interests are central to our regulatory framework,” Maida said. “Service providers are required to justify every charge. If a provider proposes a new rate for calls, they must show us a clear cost breakdown. This level of scrutiny ensures pricing remains fair.”
He acknowledged that the technical nature of these discussions might limit direct consumer participation, but assured that the Commission remains committed to consumer protection through its cost-based approach.
Earlier, the President of NITRA, Mr Blessing Olaifa, commended the NCC for its openness and engagement with the media. He pledged continued professional support from the association in covering issues that impact the growth and development of Nigeria’s digital economy.
It will be recalled that the NCC recently directed deposit money banks to stop deducting USSD charges directly from customers’ bank accounts, reinforcing its consumer protection stance.