50% Telcom Tariff Hike: Nigerians Ready To Battle FG in Court, Issue Demands
- The consumer advocacy group NATCOM has revealed plans to challenge the NCC’s 50% tariff increase
- The group stressed that the approved 50% increase is too much and will only bring more financial burden to Nigerians
- The NCC justified the hike as necessary to cover rising costs and improve services of telecommunication companies
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The National Association of Telecommunications Subscribers (NATCOMS) announced its decision to legally challenge the Federal Government’s approval of a 50% tariff hike for telecommunications services.
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Deolu Ogunbanjo, NATCOMS president, criticised the Nigerian Communications Commission (NCC) for failing to consult consumers during decision-making.
He noted that NATCOMS is not against a tariff review due to the challenges faced by telcos, but the approved 50% increase is excessive and detrimental to subscribers.
His words:
“This will affect everyone, from the biggest industries to the smallest businesses like Point of Service (POS) operators. It will significantly increase their operational costs."
NATCOMS makes demands
Ogunbanjo revealed that NATCOMS had proposed a more modest tariff adjustment of 5% to 10% to support the industry’s recovery without overburdening subscribers.
He stated:
“The telecoms sector is crucial to Nigeria’s economy, contributing double digits to the Gross Domestic Product. While we recognise its challenges, a 50% tariff hike is unacceptable.
“We painfully agreed to a marginal increase of up to 10%, but anything beyond that is too much for Nigerians already grappling with economic difficulties.”
Vanguard reports that he further suggested alternative fundraising measures for telecom operators, such as Initial Public Offerings (IPOs) on the Nigerian Exchange.
Ogunbanjo argued:
“The operators can raise funds by selling shares to Nigerians instead of imposing such a steep tariff hike on consumers."
NCC defends its decision
The Nigerian Communications Commission (NCC), in a statement signed by Reuben Muoka, the Director of Public Affairs, explained that the 50% tariff adjustment is necessary to address the rising operational costs of telcos.
He also noted that the 50% tariff increase is fair compared to the 100% increase demanded by some operators.
NCC said:
“The NCC’s decision was made under Section 108 of the Nigerian Communications Act, 2003, after extensive consultations with stakeholders in both the public and private sectors."
"The commission assured the public that it had carefully considered the economic pressures faced by Nigerian households and businesses.
It also mandated that the tariff adjustments be implemented transparently and fairly."
How Nigerians will benefit from the increase
The NCC argued that the tariff adjustment would enable telecom operators to invest more in infrastructure and innovation, leading to better consumer service.
The NCC stated.
“Subscribers will experience improved network quality, enhanced customer service, and expanded coverage across the country."
Expected new rates for call, data after NCC 50% hike
Legit.ng reported that, following the approval, Nigerians can expect MTN, Glo, and Airtel to adjust their call, data, and SMS rates.
A breakdown of the cost of each service following the NCC's 50% tariff hike approval has been revealed.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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