The National Association of Telecommunications Subscribers (NATCOMS) has vowed to challenge the Federal Government’s approval for a 50% increase in telecom tariffs, arguing that the decision is burdensome for subscribers and was made without adequate consultation.
Speaking in Lagos on Monday, NATCOMS President, Mr. Deolu Ogunbanjo, expressed dissatisfaction with the Nigerian Communications Commission (NCC) for not involving the association in the decision-making process.
Ogunbanjo explained that NATCOMS had previously suggested a moderate 5% to 10% increase to address the financial challenges faced by the telecom industry.
“This 50% tariff hike will affect everyone, from major industries to the smallest businesses like Point of Sale (POS) operators. It will escalate operational costs and burden consumers,” he said.
Acknowledging the critical role of the telecom sector in Nigeria’s economy, Ogunbanjo highlighted its contributions to meetings, banking, education, and other essential services.
“We agreed, painfully, to a marginal increase of 5% to 10%, understanding the sector’s importance to the economy. But a 50% hike is excessive and unacceptable,” he added.
Ogunbanjo proposed alternative measures for telecom operators to raise funds, such as exploring the Nigerian Exchange through Initial Public Offers (IPOs), rather than burdening subscribers.
“Operators can invite Nigerians to buy shares in their companies to raise funds. But approving a 50% tariff increase is a no! We will challenge this decision in court,” he insisted.
The NCC, in a statement signed by its Director of Public Affairs, Dr. Reuben Muoka, defended the decision, citing rising operational costs and extensive consultations with stakeholders.
The commission clarified that the 50% cap on tariff adjustments is significantly lower than the 100% hike requested by some operators.
“The NCC has prioritized striking a balance between protecting telecom consumers and ensuring the industry’s sustainability, including thousands of indigenous vendors and suppliers,” the statement read.
The regulatory body emphasized its empathy for Nigerian households and businesses affected by tariff adjustments. It also mandated telecom operators to implement the changes transparently and fairly.
The NCC assured that the adjustment would enable telecom operators to invest in infrastructure and innovation, leading to improved network quality, enhanced customer service, and expanded coverage across the country.
NATCOMS remains firm in its decision to seek legal redress. Ogunbanjo reiterated the association’s commitment to ensuring fairness for subscribers, stating:
“This fight is not just about tariffs; it’s about protecting the rights and interests of millions of telecom subscribers in Nigeria.”
The telecom sector, which contributes significantly to Nigeria’s GDP, finds itself at the intersection of economic sustainability and consumer affordability, as stakeholders continue to navigate this contentious tariff hike.
