The National Association of Telecoms Subscribers (NATCOMS) has vowed to take legal action against the Nigerian Communications Commission (NCC) over its approval of a 50% tariff increase for telecommunications services.
The NCC announced the tariff adjustment on January 20, 2025, after the Association of Licensed Telecommunications Operators of Nigeria and the Association of Telecommunications Companies of Nigeria urged the commission to review call tariffs upward due to rising operational costs. While the telcos had initially pushed for a 100% hike, the NCC capped the increase at 50%.
Speaking in Lagos on Monday, Deolu Ogunbanjo, President of NATCOMS, criticized the decision, claiming that subscribers were left out of the discussions. Ogunbanjo explained that NATCOMS had suggested a modest increase of 5% to 10% to support the industry while minimizing the burden on subscribers.
“This 50% hike is unacceptable,” Ogunbanjo said. “It will affect everyone, from the biggest industries to the smallest businesses, such as Point of Sale (POS) operators. It will significantly increase operational costs across the board.”
Ogunbanjo acknowledged that the telecom sector is under financial strain but argued that a more measured approach would have been appropriate. “Economic experts have described the telecoms industry as being in intensive care. We understand the challenges, and that’s why we reluctantly agreed to a marginal 5% to 10% increase. However, a 50% hike is excessive and unfair to subscribers,” he said.
He added that the telecom operators should explore alternative funding options rather than imposing steep tariffs on consumers. “The operators can consider raising funds through the Nigerian Stock Exchange by offering Initial Public Offers (IPO) and allowing Nigerians to invest in their companies. This approach would be more sustainable and less burdensome on subscribers,” Ogunbanjo suggested.
Ogunbanjo further stated that NATCOMS would challenge the decision in court, emphasizing the financial strain it would impose on ordinary Nigerians. “Given what people are already going through economically, this decision is a resounding no from us. We will pursue this matter legally,” he declared.
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In defense of the decision, the NCC issued a statement signed by its Director of Public Affairs, Dr. Reuben Muoka, explaining that the tariff adjustment was a response to rising operational costs in the telecom sector. “The commission approved a maximum increment of 50% for tariff adjustments, which is significantly lower than the 100% requested by some operators,” the statement read.
Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, also weighed in on the matter, stating that the tariff increase would not exceed 60%. He warned that a 100% hike would hurt Nigerians and negatively impact the country’s economy.
The decision to raise tariffs has sparked widespread criticism from subscribers, who are concerned about the financial implications. Many have called on the NCC to reconsider its stance and involve subscribers in future decisions.