The National Association of Telecoms Subscribers has threatened to sue the Nigerian Communications Commission over its approval of a 50 percent tariff increase for telecommunications services.
The NCC announced the decision on Monday after considering requests from the Association of Licensed Telecommunications Operators of Nigeria and the Association of Telecommunications Companies of Nigeria, who had initially sought a 100 percent increase to offset rising operational costs due to inflation.
Despite the NCC limiting the hike to 50 percent, subscribers and advocacy groups have expressed outrage, calling the move unfair.
Deolu Ogunbanjo, the President of NATCOMS, criticized the NCC for not involving subscribers in the decision-making process. Speaking to journalists in Lagos, Ogunbanjo said, “This will affect everyone from big industries to small businesses like Point of Service (POS) operators. It will increase operational costs.”
He acknowledged the financial struggles of the telecom industry but insisted a marginal increase of five to 10 percent would have been more acceptable.
“We understand the industry’s challenges, and we suggested a modest increase to keep it afloat. But approving a 50 percent hike is too much. We will challenge this in court,” Ogunbanjo stated.
Ogunbanjo suggested that telecom operators explore other funding options instead of relying on steep tariff increases.
“The operators can consider raising funds through the Nigerian Exchange by offering shares for Nigerians to buy. This would help them without overburdening subscribers.”
The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, had previously said any tariff hike should not exceed 60 percent, warning that a 100 percent increase would harm Nigerians and hinder economic growth.
In a statement signed by its Director of Public Affairs, Dr. Reuben Muoka, the NCC justified the tariff adjustment as a necessary response to rising operational costs.
“We approved a 50 percent increase, which is lower than the 100 percent requested by some operators,” the statement read.
The Chief Executive Officer of MTN Nigeria noted that telecom companies had requested a higher adjustment to sustain operations. Meanwhile, economic experts have warned that the tariff hike will significantly increase costs for individuals and businesses.
NATCOMS has vowed to pursue legal action if the NCC does not reconsider its decision. Ogunbanjo reiterated, “We appreciate the telecoms industry’s contribution to the economy, but this 50 percent increase is unacceptable. Subscribers deserve better, and we are ready to fight this injustice.”
