By virtue of the powers of the Nigerian Communications Commission (the “Commission”) under section 72 of the Nigeria Communications Act 2023 and sections 16 and 17 of the Quality of Service Regulations 2013, the Commission on July 29, 2024, effectively issued a directive to Mobile Network Operators (“MNOs”) to simplify their tariff plans, bundles and promotional offerings. The directive, titled the “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector" (“Simplification Guidelines”) aims to enhance transparency and consumer understanding of mobile service costs.

MNOs must publish a detailed Mandatory Tariff Disclosure Table of their tariff plans and bundle offers, including name of plan, description, price, validity period, basic components (voice, data, SMS), add-ons, prices, opt-in/out procedures, renewal terms, and rollover policies to enable consumers make informed decisions.

The Simplification Guidelines result from consultations with stakeholders and data analysis on consumer preferences and expectations. Objectives of the Simplification Guidelines include reducing tariff plan complexity, ensuring transparency and fairness of promotional elements, protecting consumer interests, and promoting fair competition among licensees. Service providers must display tariff details, such as plan names, prices, validity periods, local and international call rates for, data speeds, and fair usage policies.

Existing bonus-led plans can continue until December 31, 2024. The MNOs are mandated to educate and migrate all subscribers to the simplified plans within this period. Tariff information must be communicated in clear, user-friendly formats, with full disclosure via Unstructured Supplementary Service Data (“USSD”). Operators must offer stand-alone data bundles at fair prices and eliminate asymmetric fee structures. They must also meet the quality of service standards while complying with these guidelines.

Recommendations:

By December 31, 2024, MNOs are required to align with the Simplification Guidelines by doing the following:

1. Publish a Mandatory Tarriff Disclosure Table (in accordance with the table provided on the NCC’s website) of their tariff plans, bundles and promotional offerings including name of plan, description, price, validity period, basic components (voice, data, SMS), add-ons, prices, opt-in/out procedures, renewal terms, and rollover policies to enable consumers make informed decisions;
2. Educate and migrate all subscribers to the simplified tariff plans;
3. Communicate simplified tariffs to subscribers in clear language and a user-friendly format; and
4. Meet key performance indicators standard set out in the Quality of Service Regulations 2013 while complying with the Simplification Guidelines.