“No More N11 Per Minute”: Subscribers React as NCC Reportedly Hikes Telecom Tariffs
- Nigerian subscribers have vehemently opposed the purported recent increase in telecom tariffs by the Nigerian Communications Commission (NCC)
- The National Association of Telecom Subscribers (NATCOMS said the move would worsen the living standards of Nigerian subscribers
- The NCC, however, refuted the reported increase in telecom services as telcos proposed a 100% hike in tariff
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The National Association of Telecoms Subscribers (NATCOMS) has aggressively opposed the Nigerian Communications Commission (NCC) 's reported recent approval of a tariff increase, saying that the spike will lead to a 40% increase in telecom service prices.
Meanwhile, NCC has dismissed the purported hike with telcos proposing a 100% tariff increase, saying the sector faces an imminent shutdown if the tariff remains the same one decade later.
Source: UGC
MTN, Airtel, and other telcos push tariff hike
The operators argued that the current pricing does not reflect the reality and Nigeria’s economic conditions, citing inflation and the naira devaluation.
They also state that tariffs have not increased in the last decade, highlighting the financial strain from several government taxes.
Subscribers opposed the proposed hike
However, in a communique issued following an emergency meeting, NATCOMS decried the NCC's consideration of the tariff increase.
The communique described the decision as an incentive, stressing that it would exacerbate Nigerians' economic hardship.
According to NATCOMS, the new tariff will increase the cost of voice calls from N11 per minute to N15, and SMS will increase from N4 to N5.60.
The Sun reports that the association further stressed that one gigabyte (GB) of data will move from N1,000 per GB to N1,400, representing additional costs as the new year begins.
It was noted that the NCC’s decision would be detrimental to subscribers who are already struggling with high living standards.
NATCOMS said it strongly disagrees with the regulator’s justification that the tariff increase is for the public good.
Nigerians decry VAT increase on telecom services
The organisation also decried the effect of other cost increases, such as the 50% VAT hike on telecom services imposed by the 2019 Finance Act and the excise duty charge introduced by the Nigerian government four years ago.
It warned that the effect of these changes could make telecom services too expensive for Nigerian subscribers.
NATCOMS asked the telcos to explore other avenues for revenue, saying raising tariffs would be counterproductive for the companies.
Airtel CEO urges FG to approve call, data tariff hike
Legit.ng earlier reported that Airtel Nigeria's CEO, Dinesh Balsingh, has asked the NNC to approve an increase in telecom tariffs.
Balsingh said rising operational costs and inflation pressures in the past year have made operations unbearable for telcos.
The Airtel boss disclosed this in an open letter to the regulator, saying telecom tariffs have remained stagnant in Nigeria for over a decade.
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Source: Legit.ng
