Home Business Telecom Subscribers to Sue NCC Over 50% Telecom Tariff Hike
BusinessNews

Telecom Subscribers to Sue NCC Over 50% Telecom Tariff Hike

119
TELCOs: MTN, GLO, Others seek NCC approval for tariff increase

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.

Read Also: NCC Approves Tariff Increase for Telecoms Amid Economic Hardship   

“Boko Haram Chief of Staff” – Nigerians React as Shettima Attends World Economic Forum in Switzerland

About The Author

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

FinanceNews

Nigeria Sues Binance, Demands $81.5 Billion for Economic Losses and Back Taxes

The Nigerian government has asked the Federal High Court in Abuja to...

Fire at Islamiya School Zamfara
News

Atleast 25 People Injured as Explosion Rocks Talata Mafara Market in Zamfara

At least 25 people sustained severe burns following a fire outbreak at...

NewsSecurity

US Mission in Nigeria Assures ‘Comprehensive Monitoring’ in Response to Boko Haram Funding Allegations

The U.S. Mission in Nigeria has issued a vague statement following public...

Nigeria’s inflation rebasing
FinanceNews

Nigeria’s Inflation Drops to 24.48% After CPI Rebasing, Hardship Persists 

Nigeria’s inflation rate fell to 24.48 per cent in January 2025 from...