THE National Association of Telecommunications Subscribers (NATCOMS) have vowed to challenge the 50 per cent tariff hike approved for telecoms service providers by the Federal Government in court.
While challenging the Nigerian Communications Commission (NCC) for acceding to the hike, NATCOMS president, Deolu Ogunbanjo, on Monday, January 19, said his group was not consulted before the approval.
He admitted that the providers were facing challenges but argued that a more reasonable increase of between five and ten per cent would have been acceptable.
Ogunbanjo said a 50 per cent hike was excessive and would burden subscribers, especially small businesses and the vulnerable.
He suggested that telecom operators could explore alternative funding options, such as initial public offerings (IPOs), instead of passing the cost to customers.
He added, “However, a situation where a whole 50 per cent is granted for a tariff hike is not cheap and it is a no, no from us subscribers. I mean, for what we are already going through, no for us, we will challenge this in court.”
He said the hike in tariff would affect all customers.
According to him, people depend on telecoms for meetings, banking activities, and other activities.
“It will increase operational costs. So, that is why we painfully agreed that a moderate or marginal five per cent to 10 per cent increase would be fine.
”You know, we do not mind an increase if it is to salvage the industry that is helping us. That means so much to us and that is also contributing double digits to Nigeria’s Gross Domestic Product,” he said.
The ICIR reported on Monday that the NCC approved a 50 per cent tariff increase for telecommunications companies as telephone subscribers in Nigeria would have to pay more for data and airtime.
In a statement by the NCC spokesman, Reuben Muoka, the commission the price adjustment was considered taking into account ongoing industry reforms that would positively influence sustainability.
The NCC said it approved the increase, under Section 108 of the Nigerian Communications Act, 2003 (NCA), to regulate and approve tariff rates and charges by telecommunications operators.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators,” the commission said.
It hinted the approved adjustment was aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.
The ICIR reported that telcos had sought a 100 per cent increase in tariffs to address rising operational costs, including inflation and increased service delivery expenses.
Earlier, the telcos had warned to disrupt services unless the regulator adjusted tariffs to account for escalating operational costs.
In the statement of Monday, the NCC said it recognised the financial pressures faced by Nigerian households and businesses and remained empathetic to the impact of tariff adjustments.
As of December 2023, Nigeria has over 224 million subscribers, according to official data by the regulator.
It showed that MTN boasts over 87 million subscribers, representing 38.79 per cent of the total market share; Globacom and Airtel have 61 million subscribers, and 9mobile has 13.9 million users.
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A reporter with the ICIR
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