The National Association of Telecoms Subscribers (NATCOMS) has announced its decision to take legal action against the Nigerian Communications Commission (NCC) following the commission’s approval of a 50% increase in telecom tariffs.
This development comes after the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) lobbied the NCC to approve tariff adjustments, citing rising operational costs.
Reacting to the approval, Deolu Ogunbanjo, President of NATCOMS, criticized the NCC for failing to engage subscribers in the decision-making process. While acknowledging the financial struggles of telecom operators, Ogunbanjo emphasized that a moderate increase of 5% to 10% would have been more acceptable.
He warned that the 50% hike would negatively impact businesses, especially small enterprises such as Point of Sale (POS) operators, and significantly raise the cost of communication for individuals and companies.
Ogunbanjo maintained that Nigerians rely heavily on telecom services for banking, business, education, and communication, making an excessive increase unjustifiable. He argued that if telecom operators needed additional funding, they should consider raising capital through the Nigerian Stock Exchange via an Initial Public Offering (IPO) rather than burdening consumers with high costs.
“We appreciate the importance of the telecom sector to Nigeria’s economy, contributing significantly to GDP growth, but a 50% tariff hike is unreasonable and unacceptable,” Ogunbanjo said.
The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, had previously stated that the tariff hike would not exceed 60%, acknowledging that a 100% increase would hurt the economy.
However, Karl Toriola, CEO of MTN Nigeria, revealed that telecom operators initially sought a 100% price increase, but the NCC capped it at 50% to balance industry needs with consumer affordability.
Despite this compromise, NATCOMS remains firm in its opposition, vowing to challenge the increase in court.
As the telecom tariff controversy unfolds, NATCOMS’ legal action could delay the implementation of the new rates, while Nigerians brace for potential costlier communication services in the coming months.
