Telecom Subscribers to Sue NCC Over 50% Telecom Tariff Hike

The National Association of Telecoms Subscribers (NATCOMS) has announced its intention to sue the Nigerian Communications Commission (NCC) over the recently approved 50 per cent hike in telecom tariffs, stating that the hike adds to the financial burden on Nigerians already grappling with rising living costs.

The tariff increase comes after advocacy from the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), who raised concerns about the sustainability of the industry and called for an upward review of call tariffs.

However, NATCOMS, which represents the interests of telecom subscribers, expressed strong opposition, claiming that the NCC did not involve the consumers in the decision-making process.

Deolu Ogunbanjo, president of NATCOMS, voiced the association’s discontent, stating that while the organisation understands the economic challenges faced by the telecom sector, a 50 per cent increase was far too steep.

Ogunbanjo noted that NATCOMS had suggested a more modest tariff increase of between 5 to 10 per cent, considering the vital role telecom services play in various sectors of the Nigerian economy.

We understand the challenges the telecoms industry is facing, and we are not against a tariff increase to support the industry. However, a 50 per cent hike is unacceptable,” Ogunbanjo said. “This will affect everyone, from large businesses to small operators like Point of Service (POS) vendors, and increase operational costs.”

Ogunbanjo emphasised that the telecommunications sector is crucial to the functioning of many industries, including banking, education, and government services. He acknowledged the importance of supporting the sector but argued that a more gradual increase would have been preferable.

The proposed tariff hike is coming at a time of increasing economic hardship in Nigeria, with the country grappling with high fuel prices and rising costs of living. The increased telecom charges are expected to add to the financial strain already being experienced by many Nigerians.

While the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, had previously indicated that any hike in telecom tariffs would not exceed 60 per cent, the 50 per cent increase approved by the NCC has raised alarm among Nigerians who are struggling with escalating expenses in other areas.

In response to the tariff hike, Ogunbanjo announced that NATCOMS would take legal action against the NCC. He urged telecom operators to consider alternative funding mechanisms, such as Initial Public Offerings (IPOs) on the Nigerian Stock Exchange, to raise capital instead of imposing heavy tariff hikes on consumers.

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