Telecom Subscribers Reject 50% Tariff Hike

The National Association of Telecoms Subscribers (NATCOMS) has threatened legal action against the Nigerian Communications Commission (NCC) over its approval of a 50% tariff hike.

The NCC had granted telecommunications companies (telcos) permission to increase tariffs by 50% on January 20, following requests from the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON). These associations had previously urged the NCC to review and raise call tariffs.

While telcos initially demanded a 100% increase, the NCC capped the hike at 50%, significantly reducing their request. Speaking to journalists in Lagos, Deolu Ogunbanjo, President of NATCOMS, expressed dissatisfaction, stating that subscribers were not consulted in the decision-making process.

Ogunbanjo acknowledged the challenges faced by the telecom sector, noting that NATCOMS had proposed a modest 5% to 10% increase to support the industry. However, he emphasized that the 50% hike approved by the federal government was unacceptable.

“This increase will impact everyone, from large industries to small businesses, including Point of Service (POS) operators. It will drive up operational costs,” Ogunbanjo said.

He further highlighted the importance of the telecom sector, which contributes significantly to Nigeria’s GDP and supports vital activities such as banking, education, and virtual meetings.

Ogunbanjo suggested that telcos explore alternative financing options, such as raising funds through the Nigerian Exchange or Initial Public Offers (IPOs), instead of burdening subscribers with a substantial tariff increase.

“The approved 50% tariff hike is too high and unfair to subscribers. If necessary, we will challenge this decision in court,” he stated.

In a separate development, the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, recently warned against a 100% tariff increase, stating that it would harm Nigerians and hinder economic growth. Tijani confirmed that any tariff hike should not exceed 60%.

The NCC defended its decision, explaining in a statement signed by its Director of Public Affairs, Dr. Reuben Muoka, that the tariff adjustment was capped at 50% to address the rising operational costs faced by telcos while ensuring affordability for subscribers.