Nigerians React to Proposed Call, Data Tariff Hikes by MTN, Airtel, Others

Nigerians React to Proposed Call, Data Tariff Hikes by MTN, Airtel, Others

  • The National Association of Telecoms Subscribers have rejected the proposed hike in data and call tariffs
  • They described the move to increase tariffs in these challenging times as insensitive to the plight of Nigerians
  • The proposed hike will see call tariffs move up to N15.40 per minute, N5.60 per SMS, and N1,400 per gigabyte of data

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience and a deep understanding of Nigeria's corporate sector and emerging trends in the fintech space.

Telecom subscribers in Nigeria have objected to the proposed hike in call and data tariffs.

Speaking under the aegis of the National Association of Telecoms Subscribers, they denounced the plan, describing it as an unnecessary burden on consumers who already face economic hardship.

They made this known in a communique issued after an emergency meeting on Tuesday.

subscribers in Nigeria
Telecom subscribers Object to Tariff Hike, describe it as insensitive. Photo Credit: Ivan Pantic
Source: Getty Images

The communique signed by Chief Adeolu Ogunbanjo, the National President, and Barrister Bayo Omotubora, the National Secretary of NATCOMS, chided the Nigerian Communications Commission (NCC) for even considering a 40% tariff hike.

Read also

Tinubu sends message to Nigerians on economic reforms, naira expected performance in 2025

It read in part;

“This association considers the decision of the NCC as very insensitive and not in the interest of Telecoms Services Consumers. The unrelenting rise in prices of Goods and Services in the Country has made life extremely difficult for the generality of Citizens who are Consumers of Telecom Services. The new increment is therefore one additional burden too many. This is a clear violation of the Nigerian Communications Commission’s duty to protect the interests of consumers.”

They said further in the communique that the taxes on telecom services introduced in the 2020 Finance Act have already caused hardship for Nigerian subscribers, some of whom have already cut back on their telecom spending.

NATCOM suggested that the TELCOs explore alternate means of raising funds, such as listing on the Nigerian Stock Exchange, to attract more investors.

The proposed hike

Information from a Senior Executive at a leading telco recently revealed that Telcos are set to secure approval from the NCC to hike call and data charges before the end of Q1, 2025.

Read also

Nigeria Customs intercepts 7 trucks with over 2000 bags of foreign rice

The proposed hike is more than a decade overdue, according to the Telcos, as inflation and forex volatility continue to push the costs of operations upward.

A part of NATCOM communique says that the hike would push the cost of voice calls from N11.00 to N15.40 per minute, the cost of SMS from N4.00 to N5.60, and the cost of data from N1,000 to N1,400 for 1 gigabyte of data.

The PUNCH reports, however, that a source within the NCC dismissed the rumours of tariff hikes.

Why Telcos want to hike tariff

In a recent Legit.ng report, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, stated that the high cost of operation could drive TELCOs out of business if they are not allowed to hike tariffs.

He explained that these rising costs are triggered by volatile foreign exchange rates, rising inflation, and increasing fuel and electricity costs in Nigeria.

Read also

Nigeria Customs generates record-breaking N5.1trn in revenue in 2024

Adebayo warned that subscribers may experience service disruption, which could impact sectors like security, healthcare, and education which rely heavily on communication infrastructure.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: Legit.ng

Authors:
Ruth Okwumbu avatar

Ruth Okwumbu (Business Editor) Ruth Okwumbu-Imafidon is a business journalist with over a decade's experience. She holds both a Masters' and B.Sc. degrees Mass Communication from the University of Nigeria, Nsukka, and Delta State University. Before joining Legit.ng, she has worked in reputable media including Nairametrics. She can be reached via ruth.okwumbu@corps.legit.ng