Subscribers Finally Speak as MTN, Airtel, Others Set to Increase Call, Data Tariff
- The National Association of Telecoms Subscribers is suing the Nigerian Communications Commission (NCC)
- This came after the NCC approved telecommunications companies' (telcos') proposal to increase prices on January 20
- The president of NATCOMS stated that the federal government's approved tariff rise of 50% was unacceptable
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The National Association of Telecoms Subscribers (NATCOMS) says it will sue the Nigerian Communications Commission (NCC) over the 50% tariff hike.
Source: Getty Images
This occured after telecommunications firms' (telcos') request to raise tariffs was granted by the NCC on January 20.
After the Association of Telecommunications Companies of Nigeria (ATCON) and the Association of Licensed Telecommunications Operators of Nigeria (ALTON) expressed a number of issues and requested that the NCC reconsider call pricing upward, the change was made.
Telcos requested a 100 percent hike in prices, according to Karl Toriola, CEO of MTN Nigeria.
However, by granting the operators' request, the NCC limited the pricing rise to 50%, which is half of what the telecom had demanded.
How subscribers react
Deolu Ogunbanjo, president of NATCOMS, responded to the news by claiming that the NCC did not include subscribers in the agreement, The Cable reported.
According to Ogunbanjo, NATCOMS had proposed a marginal pricing rise of 5 to 10% since it recognized the predicament the telecom sector was facing.
He declared that the authorized 50% tariff increase by the federal government was intolerable.
“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators. It will increase operational costs.” Ogunbanjo said.
According to Ogunbanjo, economic analysts had x-rayed the telecom industry and concluded that it was in critical condition, requiring immediate attention.
“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it,” he said.
“So, that is why we painfully agreed that, look, a moderate or marginal five per cent to 10 percent increase will be fine.
“You know, we do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s gross domestic product (GDP).
“So, we appreciate that. It’s painful, but we agreed. We said, okay, we will not mind if it is just a five percent to 10 percent increase.”
Ogunbanjo advised the operators to look for funding possibilities on the Nigerian exchange if they require money.
“The industry operators can opt for an Initial Public Offer (IPO) for Nigerians to buy shares in their companies as a way of raising funds,” Ogunbanjo added.
“However, a situation where a whole 50 percent is granted for tariff hike is not cheap and it is a no! no! from us subscribers.
“I mean, for what we are already going through, no for us, we will challenge this in court.”
The minister of communications, innovation, and the digital economy, Bosun Tijani, stated on January 16 that a telecom tariff increase will not surpass 60 percent.
A 100 percent increase, according to Tijani, will harm Nigerians and impede the nation's economic development.
MTN share price surges 21% on anticipated hike in tariff
Legit.ng reported that amid discussions of an imminent tariff hike, MTN Nigeria's shares have appreciated by 21% just two weeks into 2025. This makes it one of the outstanding performers on the Nigerian Exchange Group (NGX) in 2025.
Stock market analysts say this impressive performance after an unfavourable 2024 is driven by positive sentiments and fueled by the anticipated hike in tariff prices.
Recall that telecommunications operators have been agitating for an increase in call and data tariffs since 2024, and speculations arose last month that the increase would be approved in the first quarter of 2025.
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Source: Legit.ng
