The National Association of Telecommunications Subscribers (NATCOMS) announces plans to challenge the Federal Government’s approval of a 50% telecom tariff increase, arguing that the decision lacks proper consultation with subscribers and key stakeholders.
NATCOMS President, Deolu Ogunbanjo, criticizes the Nigerian Communications Commission (NCC) for implementing the hike, calling it a financial burden on both businesses and individual consumers, especially small enterprises like Point of Sale (POS) operators.
“This increase affects everyone, from major industries to small businesses. It raises operational costs and puts unnecessary pressure on consumers,” Ogunbanjo states.
While acknowledging the economic challenges within the telecom sector, he insists that a 5% to 10% increase would have been more reasonable.
“We understand the need to support the industry, but a 50% increase is excessive. A more gradual approach would have been fairer,” he adds.
Ogunbanjo urges telecom operators to explore other funding methods instead of placing the financial burden on consumers. He suggests Initial Public Offerings (IPOs) as an alternative to tariff hikes.
“Operators can raise capital by offering shares to Nigerians instead of imposing a 50% increase on subscribers. Such a drastic hike is unfair and unacceptable,” he insists.
NATCOMS confirms that it is moving forward with legal action to challenge the decision, emphasizing the financial strain it places on consumers amid ongoing economic hardships.
The Nigerian Communications Commission (NCC) defends the tariff hike, citing rising operational costs as the primary reason for the adjustment.
“The NCC aims to balance consumer protection with industry sustainability, ensuring that telecom operators can continue providing essential services,” states Dr. Reuben Muoka, NCC’s Director of Public Affairs.
The commission clarifies that while some operators requested a 100% increase, it approved a maximum adjustment of 50% after consultations with stakeholders.
“We recognize the financial difficulties Nigerians face, and we are ensuring that the implementation of these adjustments remains transparent and fair to consumers,” the NCC states.
The NCC assures subscribers that the increase will allow operators to invest in network expansion, infrastructure, and improved service delivery.
“These adjustments will enhance network quality, boost connectivity, and ultimately benefit consumers,” the commission adds.