Telecom Consumers Propose New Call, Data Rate for MTN, Airtel, Others
- NATCOMS called on the federal government to reduce the telecom tariff rise from 50% to not more than 10%
- The association’s said the commission deviated from its primary responsibility of protecting telecoms consumers
- He said that the development will affect students, organisations and data users across the country
Legit.ng journalist Zainab Iwayemi has 5 years of experience covering the Economy, Technology, and Capital Market.
In the interest of low-income Nigerians, the National Association of Telecommunications Consumers of Nigeria (NATCOMS) has urged the federal government to lower the 50% telecom tariff increase to a maximum of 10%.
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NATCOM president, Deolu Ogunbanjo, said this in a statement while reacting to the 50% hike in tariff for telecommunications services.
He described the development as an overkill adding that the commission had abdicated its primary responsibility of protecting telecoms consumers from the unabridged quest of the telecoms operators to maximize profits at all costs.
Ogunbanjo said that the operators have various options to fall back on, generate capital to retool their operations, do aggressive debtors chase, and recover intra-industry debts, without casting the unbearable burden of 50% tariff hike on the hapless telecoms subscribers.
“There was an era in the telecommunications industry when mega profits in the region of billions were reaped by the operators, why should they now be allowed to burden the consumers with 50% tariff hike. They can as well plough back those billions to improve service delivery.
“There is also the option of funding their businesses with loans either within Nigeria or from other countries where interest rates are predictable, after all, they are in business.
“The operators should be advised to explore other options and spare their over-burdened customers this new yoke. Every Ministry, Department and Agency of the Government seems to be in a race to over-burden consumers of goods and services by devising various ways to slam the citizens with multiple levies.”
Implication of telecom tariff increase
Ogunbanjo added that the implications of the 50% hike are many and damaging according to a Daily Trust report.
According to him, small businesses that depend on telecom services will be out of business as fast as today.
He added that children in schools who depend on data to do several things will now be denied the opportunities and subtly disrupt their academic programmes.
“The senior citizens who depend on telecom services to keep in touch with their children will now have to fall back to analogue era. Big businesses that run multiple services on data, will simply pass the costs to their customers who are still the consumers. The list is endless.”
Ogunbanjo therefore appealed to the NCC not to implement the 50% tariff hike, but, advise the operators to look elsewhere for funds
He added,
“Even where tariff hike is justified, a 10% hike would have been a balancing measure, whilst exploring other funds raising measures as aforementioned.“
GSMA Forecasts 2% Increase in Telecoms’ Contribution
Legit.ng reported that the Global System for Mobile Communications Association (GSMA) had projected a 2% increase in the telecommunications sector's contribution to Nigeria's Gross Domestic Product (GDP) by 2028, following the government's approval of a 50% tariff increase in telecom services.
GSMA disclosed this during the presentation of its Digital Economy Report 2024 to the media over the weekend.
At the media briefing, GSMA executives, Angela Wamola, head of Sub-Saharan Africa, and Caroline Mbugua, senior director of Public Policy & Communications for Sub-Saharan Africa, also addressed the potential impact of the 50% tariff hike on the sector, consumers, and the broader economy.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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