Subscribers Threaten to Sue MTN, Airtel, Others Over Planned 100% Tariff Hike on Calls, Data

• Telecom subscribers have announced plans to sue service providers to court over a proposed 100% tariff increase on calls and data rates
• NATCOMS intends to file a lawsuit should the operators implement the hike without first considering alternative ways to generate revenue
• The association argued that the proposed increase would unfairly strain low-income subscribers and limit their access to essential services

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.

Telecommunications subscribers have announced plans to take legal action against service providers over a proposed tariff increase that could potentially double the cost of services across the country.

While telecom companies argue that the price adjustment is necessary to address escalating operational costs, the National Association of Telecommunications Subscribers (NATCOMS) has firmly rejected the move.

NATCOMS president, Adeolu Ogunbanjo, stated that the association intends to initiate a class-action lawsuit should the operators implement the hike without considering alternative revenue sources.

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Telcos call for tariff increase

For the first time in over a decade, telecom operators have consistently pushed for tariff adjustments this year, citing increased operational costs due to inflation and macroeconomic challenges.

Gbenga Adebayo, Chairman of the Association of Telecommunications Companies of Nigeria (ALTON), previously warned about the potential risks of delaying a tariff review, including widespread service disruptions and a decline in service quality.

MTN Nigeria’s Chief Executive Officer, Karl Toriola, also addressed the issue, revealing that telecom companies had formally submitted a request to the NCC for a 100% tariff increase.

He justified the proposed hike as critical to sustaining the industry amidst escalating operational expenses.

Toriola further noted that the NCC is still evaluating the proposal and has not yet reached a decision.

If approved, the tariff adjustment would double current rates, increasing the cost of a voice call from N11.00 to N22.00 per minute, an SMS from N4.00 to N8.00 per message, and a 1GB data bundle from N1,000 to N2,000.

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Subscribers plan legal action against Telcos

The president of NATCOMS has condemned the proposed 100% tariff increase, describing it as both excessive and unsustainable, and has called on the Nigerian Communications Commission (NCC) to reject the operators’ request.

Ogunbanjo said:

“Initially, we were looking at a marginal increase of five per cent to 10 per cent. Then the NCC considered a 40 per cent increase. Now, telcos are proposing 100 per cent, and we are saying no.

“This is a sector of national interest, and we will not hesitate to seek legal redress to protect subscribers’ rights.”

According to Punch, Ogunbanjo recognized the financial challenges telecom companies are facing, such as inflation and increasing operational costs.

However, he stressed that subscribers should not be forced to shoulder these burdens without the operators exploring alternative funding solutions first.

The consumer group argued that the proposed increase would unfairly strain low-income subscribers, potentially limiting their access to essential communication services.

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NCC addresses data depletion complaints

In related news, Legit.ng reported that the NCC refuted allegations of widespread quick data depletion on mobile networks in Nigeria.

The clarification follows claims by subscribers that telecom operators had diminished the value of data packages offered to customers.

The commission stated that an audit conducted in the third quarter of 2024 found no evidence to support these allegations.

Source: Legit.ng