Business

The Nigerian Communications Commission (NCC) has issued a directive to telecommunications operators to simplify their tariff plans, bundles, and promotional activities.

This move aims to provide clear, easy-to-understand, and accurate information about the cost of voice, short messaging service (SMS) and data services to subscribers.

The directive, titled “Guidance on the Simplification of Tariffs in the Nigerian Communications Sector,” was issued on July 29, 2024. It mandates Mobile Network Operators (MNOs) to publish a comprehensive table showing the features of their tariff plans and bundle offers.

The table should contain all necessary information for subscribers to make informed decisions, including details on add-ons, their prices, how consumers can opt-in or out, terms and conditions for renewal, and rollover policies.

The guideline is the outcome of consultations with industry stakeholders, including MNOs and Consumer Focus Groups, and extensive data analysis on consumer preferences and expectations.

The objectives of the simplification guidelines are to reduce the complexity of tariff plans and bundles, ensure transparency and fairness of promotional elements of tariff plans, protect consumers’ interests by providing clear and understandable tariff information so that they make informed decisions, and promote fair competition among licensees by standardising tariff structures.

Service providers are also required to display all relevant information about their tariffs, such as the name of the plan, price, validity period, price-per-second for on or off-network and international calls, expected data speeds, and fair usage policies.

“Operators can maintain existing bonus-led tariff plans till 31st December 2024, within which period operators are expected to educate and migrate all subscribers to the simplified tariff plans,” the directive stated.

The guidelines further mandate that MNOs must communicate tariffs to subscribers in “clear language and a user-friendly format,” with full disclosure of a subscriber’s tariff plan via Unstructured Supplementary Service Data (USSD).

The guidelines further mandate that MNOs must communicate tariffs to subscribers in “clear language and a user-friendly format,” with full disclosure of a subscriber’s tariff plan via Unstructured Supplementary Service Data (USSD).

Additionally, “operators must offer stand-alone data bundles at fair prices to avoid tying consumers with products they do not need; bonuses on promotions must be stated in actual value; access fees and asymmetric fee structures must be eliminated,” among other conditions.

The NCC emphasised that while complying with these guidelines, operators must also meet the Key Performance Indicators (KPIs) standards set out in the Quality of Service (QoS) Regulations.

Amid complaints by the Airline Operators of Nigeria over multiple taxation, the Federal Government has expressed its intention to further raise its charges.

The Managing Director of the Nigerian Airspace Management Agency, Umar Farouk, announced this on Friday at the League of Airports and Aviation Correspondents seminar themed “Aviation Survivability amidst a Challenging Macro-Economic Environment,” held in Ikeja, Lagos.

He stated that the agency would raise its en-route navigational charges from N2,000 and N6,000 to N18,000 and N54,000 per flight. Similarly, the airspace agency increased the extension of service hours to airlines from N50,000 to N450,000, representing an 800 per cent increase per extension to enable the agency to recover the cost of diesel and other logistics during the extension period.

This means that airfares might also skyrocket by 800 per cent.

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In January, NAMA and the Nigerian Civil Aviation Authority held a strategic meeting with some airline operators to review what has been described as the outdated N16,000 terminal en-route navigational charges.

He said, “The Nigerian Airspace Management Agency relies on statutory fees for the management of the airspace (remember that aviation takes place only in the air). These funds are generated from services we provide to the flying community. Without these funds, NAMA can’t discharge its responsibility of ensuring the safety of our airspace effectively. We mainly generate these funds through the airline companies.”

Farouk also noted that in 2023, NAMA had an expenditure of about N21 billion in personnel costs alone, over N12 billion in capital costs, and over N10 billion in overhead costs, adding that all these were to be funded without the Federal Government budgetary allocation.

He said NAMA had been charging as low as N11,000 per flight when a one-way domestic ticket cost only N16,000.

He mentioned that while ticket prices today have gone up astronomically to as high as between N150,000 to N200,000 for a one-way economy ticket owing to the prevailing economic circumstances, NAMA navigational charges had remained the same since June 2008.

“Currently, our unit rate for international flights charged for service provision is about $70, and domestic flights are charged N6,000. While NAMA recognises the difficult economic environment in which aviation operates in Nigeria, it is equally a part of the ecosystem.

“It goes to the same market to procure equipment and other services like training. If NAMA is to survive and continue to guarantee safety and efficiency in the airspace, it must breathe.

“Even though most costs in the economy have increased by more than 1,000 percent, NAMA has proposed to increase its fees by 800%. The new rates for en-route and terminal navigation charges are to be reviewed from N2,000 and N6,000 to N18,000 and N54,000 per flight.

“Also, the extension of service hours is to be reviewed from N50,000 to N450,000 per extension to enable the agency to recover the cost of diesel and other logistics during the period of extension”.

“The largest percentage of NAMA’s revenue comes from en-route navigation charges (domestic and international flights) and terminal navigation charges (domestic and international flights). While international flights pay in US dollars, domestic flights pay in the Nigerian currency.”

The Central Bank of Nigeria (CBN) has again increased the interest rate, making it more expensive for people and businesses to borrow money.

The CBN Governor, Olayemi Cardoso, announced the increase on Tuesday after a meeting with the Monetary Policy Committee (MPC) in Abuja.

The interest rate, also known as the Monetary Policy Rate (MPR), was raised by 0.5% from 26.25% to 26.75%.

More to follow…

Access Bank Plc, Nigeria’s leading institution in sustainable finance, was one of the participants in the launch of the Nigerian Exchange Limited (NGX) Impact Board, a dedicated platform for listing sustainability instruments to integrate sustainability into the core of Nigeria’s capital market.

The event, marked by the attendance of high-profile stakeholders, including the Minister of Environment, Balarabe Lawal, and the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, underscored the critical need for sustainable financing in Nigeria. Lawal emphasised the urgency of addressing environmental challenges, stating, “With issues like flooding, pollution, and deforestation, we urgently need funds to tackle them. This is why we are approaching the market.”

Commenting on the launch of the Impact Board, Gregory Jobome, Executive Director, Risk Management at Access Bank Plc, highlighted the Bank’s pioneering role in sustainable finance, noting, “As a leader in the issuance of corporate Green Bonds in Africa, Access Bank is committed to driving environmental sustainability and supporting projects that align with the Sustainable Development Goals (SDGs). The NGX Impact Board is a significant step towards fostering a greener and more responsible investment landscape.”

The Director-General of the SEC, Dr. Emomotimi Agama, reaffirmed the commission’s support for sustainable finance, saying, “We are ready to bolster the sustainable finance market, aiming to deepen it with diverse instruments that contribute to Nigeria’s sustainable development.”

Dr. Umaru Kwairanga, Group Chairman of the Nigerian Exchange Group, expressed confidence the NGX’s capabilities, stating, “We possess the capacity, resources, and technology to raise the funds required by the Federal Ministry of Environment and the Nigerian economy to achieve the goals outlined in the Paris Agreement and the Sustainable Development Goals.”

Access Bank has consistently demonstrated leadership in climate finance across Africa, exemplifying a strong commitment to sustainable environmental practices and financial solutions. In June 2018, the Bank supported the Green Bond Market Development Programme organised by FSD Africa, the Climate Bonds Initiative (CBI), and FMDQ Group PLC, aiming to develop a non-sovereign green bond market in Nigeria.

This initiative sought to entrench sustainability principles into the Nigerian capital markets and support broader debt capital market reforms to facilitate the transition to a climate-resilient economy.

In April 2019, Access Bank issued its inaugural green bond, valued at NGN 15 billion (USD 41 million), becoming the first African corporate entity to receive CBI certification. The bond, listed on multiple exchanges including the FMDQ OTC Securities Exchange, Nigerian Stock Exchange, and Luxembourg Green Exchange, set the tone for the continent’s appetite for green capital. Building on this success, the Bank issued USD 50 million Reg S Step-Up Green Notes in 2022 under its US$1.5 billion Global Medium-Term Note Programme, further solidifying its commitment to sustainable financing.

The Federal Government plans to implement a 50% tax on the profits banks earn from foreign exchange revaluation in 2023.

President Bola Tinubu has submitted proposed changes to the 2023 Finance Act to the National Assembly for approval.

This was contained in a statement by Internet personality, Imran Muhammed on Wednesday, July 17.

The statement reads: “The government intends to implement a 50% tax on the profits that banks earn from foreign exchange revaluation in the year 2023.
“The newly suggested changes to the 2023 Finance Act have been submitted by the President to the National Assembly for their approval.

“The funds generated from the windfall tax outlined in the President’s letter to the Senate will be utilized for projects aimed at revitalizing infrastructure, education, healthcare, and other related initiatives under the “Renewed Hope” program.

“The tax labeled as a “windfall tax” on foreign exchange gains will be gathered by the Federal Inland Revenue Service (FIRS).

“”There shall be levied and paid to the benefit of the Federal Government of Nigeria a tax of 50% on the realised profits from all foreign exchange transactions of banks within the 2023 financial year.”