The National Association of Telecommunications Subscribers (NATCOMS) has vowed to challenge the Federal Government’s recent approval of a 50% tariff increase for telecom services.
The move, which has led to objections from various quarters, was authorised by the Nigerian Communications Commission (NCC) to address expensive costs of operations in the sector.
Deolu Ogunbanjo, president of NATCOMS, said the decision was made without adequate consultation with stakeholders. He described it as an unfair burden on Nigerians already facing economic difficulties. Speaking in Lagos, Ogunbanjo said, “This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators. It will increase operational costs.”
While acknowledging the challenges faced by telecom operators, Ogunbanjo suggested a more moderate increase of 5% to 10% would have been sufficient. He also proposed alternative strategies for raising funds, such as Initial Public Offerings (IPOs), to reduce the financial burden on subscribers.
“Operators can allow Nigerians to invest in their companies through IPOs rather than imposing such a steep tariff increase. A 50% hike is unacceptable,” he added.
NCC Defends Decision
In its defence, the NCC argued that the tariff adjustment was necessary to sustain the industry. According to a statement by its Director of Public Affairs, Dr Reuben Muoka, the commission approved the increase after extensive consultations with stakeholders.
It noted that some operators had requested a 100% hike but the NCC capped the adjustment at 50% to strike a balance between industry sustainability and consumer protection.
“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity,” the NCC stated.
The commission also emphasised the need for transparency, mandating operators to educate the public on the new rates and ensure measurable service improvements.
Mixed Reactions to the Increase
Subscriber groups and consumer advocates have condemned the hike. The Association of Cable TVs, Internet and Telecom Subscribers of Nigeria (ATCIS-Nigeria) described the increase as punitive and ill-timed, given the rising cost of living.
ATCIS President Sina Bilesanmi accused the government of prioritising corporate interests over consumer welfare, saying, “This increase will further strain the finances of struggling Nigerians.”
Ogunbanjo reiterated a similar warning, stating that the hike could force many small businesses to shut down. He reaffirmed NATCOMS’ plan to file a fresh lawsuit to challenge the decision, describing it as a “provocative and disproportionate” measure.
On the other hand, industry stakeholders have defended the need for higher tariffs. The Association of Telecom Companies of Nigeria (ATCON) argued that the adjustment was overdue, given the high costs of operations and the long gap since the last tariff review.
ATCON President Tony Emoekpere noted that while the 100% hike requested by telecom operators might seem excessive, the 50% approval reflects current economic realities. “The delay in addressing tariff rates over the years made this adjustment inevitable,” he explained.
The tariff increase is expected to impact data, calls, and SMS charges, raising issues about affordability for many Nigerians.
While the NCC has assured that the adjustments will support better network quality and broader coverage, consumers are calling for greater transparency and fairness in implementing the new rates.
