Subscribers Reject Minister’s Proposal for Telecom Tariff Hikes on Calls, Data
- Nigerian subscribers led by the ATCIS have put their foot down to reject Minister Bosun Tijani's proposal for a 30-60% tariff hike
- ATCIS states that it is not within the powers of the minister to determine tariff prices for the players in a liberalised market
- The body insists that no hike is possible without due consultation and engagement with the subscribers, who would ultimately bear the financial burden
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience and a deep understanding of Nigeria's Energy sector and emerging trends in the fintech space.
Nigerian subscribers have vehemently opposed the proposed 30-60% hike in data and call tariffs, as proposed by the Honourable Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani.
The subscribers, speaking under the aegis of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS-Nigeria), stated that the minister's move to propose a rate for the hike contradicts the earlier agreements reached at the meeting held at the Nigerian Communications Commission (NCC) headquarters in Abuja on January 9, 2025.
Source: UGC
The body, which represents over 220 million Nigerian subscribers, insisted that Minister Tijani does not have the power to set prices independently in a liberalised market.
In a chat with the SUN, the National President of ATCIS, Sina Bilesanmi, noted that the Abuja meeting did not discuss or reach an agreement on the proposed tariff hike; hence, there were no grounds for the minister to make such a pronouncement.
Minister Tijani proposed 30-60% telecom tariff hike
Recall that Dr Bosun Tijani recently proposed a tariff hike ranging from 30 to 60%, as against the 100% proposed by the telecommunication companies.
He described his proposal as more moderate, and with minimised impact on the Nigerian populace, noting that the 100% hike demanded by the Telcos would be too inconsiderate on their Nigerian customers.
Ilesanmi, in his chat, noted that there was no rationale for advocating any increase at all, as Nigerians are already heavily burdened with inflation and other economic challenges.
According to Bilesanmi, the meeting on January 9 was to ensure adequate stakeholder consultation and enlightenment before any tariff hike and adequately engage the subscribers' representative body before reaching any decision.
NCC responsible for determining prices
Bilesanmi noted that the minister is not responsible for determining tariff prices; pricing falls under the responsibility of the Nigerian Communications Commission (NCC).
The NCC, for its part, will conduct an analysis based on data and consult with stakeholders and subscribers before proceeding with any rate hike.
He said:
“As the telecom subscriber advocacy body, we should have a say in collaboration with NCC because we’re the ones paying the money involved. We agreed at the meeting that there would be no hike, but further deliberations and consultations are ongoing with relevant stakeholders, especially the MNOs and subscribers. The MNOs, through their representatives—ATCON and ALTON—were supposed to organize an enlightenment and sensitization programme to address the issues.”
Ilesanmi noted that all of these steps would lead to an equilibrium price agreeable to all, and only at that point does the NCC step in to grant approvals.
He lamented that any hike in call and data tariffs would be detrimental to the well-being of small business owners and individual subscribers, who depend on these to conduct their businesses and make a living.
He further pointed out that the drive to increase tariffs could hinder the government's efforts to advance its digital economy goals.
Telecom tariff hike will result in new charges
In related news, Legit.ng reported that the new charges for calls and data will be for Nigerian subscribers after the hike takes effect.
Should the stakeholders opt for a 60% tariff hike, the average cost of calls will increase from N11 to N18.33 per minute, SMS costs will rise from N4 to N6.67, and the cost of one gigabyte (GB) of data bundle will cost N1,667 from N1,000.
However, a 30% hike will increase call costs to N14.33, SMS costs to N5.33, and the price of one gigabyte of data to N1,337.
The minister argued that this range was considered moderate compared to the 100% hike considered by the operators.
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Source: Legit.ng
