LCCI Speaks on How Hike on Call, Data Tariffs Will Impact Low-income Nigerians

• The Lagos Chamber of Commerce and Industry (LCCI) has cautioned telecom operators against the telecom tariff increase
• The LCCI DG noted that the recent tariff hike could place undue financial pressure on low-income earners in Nigeria
• She noted however that the telecoms subsector requires substantial investments to push Nigeria toward becoming a trillion-dollar economy

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The Lagos Chamber of Commerce and Industry (LCCI) has raised concerns that the recent hike in telecommunications tariffs may place an extra financial burden on consumers, especially those with low incomes.

Speaking in a statement released on Monday, the Director-General of LCCI, Chinyere Almona, recognized that the rising costs in the telecommunications sector made it difficult for operators to remain profitable.

The rising cost of energy prices, inflation, and naira depreciation translated into a heavy financial load for the operators, hence the decision to raise tariffs.

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However, Almona noted that while the tariff increase may help the operators, it also raises concerns about whether consumers can afford the higher prices.

She noted that the most concern would be for Nigerians in the lowest income bracket, earning the minimum wage and below, The Cable reports.

NCC approves 50% Telecom tariff hike

After more than a year of agitations, Nigerian Telecom operators recently received the required approval to implement a tariff increase, to mitigate the rising costs of operations.

The Nigeria Communications Commission (NCC) however restricted them to a 50% tariff increase, while rejecting the 100% increase they had proposed.

This action has generated several reactions over the last week, including threats of a lawsuit from the Nigerian Subscribers under the ATCIS.

Telecom tariff hike should attract improved service

Almona, in her statement, emphasized the importance of improving service delivery and strengthening regulatory oversight, as the increased tariff takes effect.

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She urged telecom operators and regulators to focus on providing high-quality services that improve cost-efficiency for businesses, and support automation of government services.

She also reiterated the chamber’s call for reducing human involvement in regulatory processes, by automating things such as product licensing, permit approvals, certification issuance, and port operations.

Almona noted too that the sector will require more investment in key digital infrastructure to help Nigeria reach its goal of becoming a $1 trillion economy.

She noted that the key reason behind rebasing Nigeria’s GDP is to include activities in the ICT sector.

Subscribers negotiate over Telecom tariff hike

In related news, Legit.ng reported that the Nigerian subscribers have decided to negotiate with the NCC over the approved Telecom tariff hike.

The subscribers under the aegis of the National Association of Telecommunication Subscribers (NATCOMS) hope to persuade the NCC to rescind the earlier approval and consider a lower rate for the tariff increase.

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They chose to negotiate even as the Nigerian Labour Congress and the National Association of Nigerian Students (NANS) threatened a national boycott of telecom services, to protest the hike.

Source: Legit.ng