The National Association of Telecommunications Subscribers (NATCOMS) has announced its intention to contest the Federal Government’s recent approval of a 50% tariff hike for telecom operators. The association argues that the decision, approved by the Nigerian Communications Commission (NCC), was made without sufficient consultation with subscribers and other key stakeholders.
Deolu Ogunbanjo, President of NATCOMS, expressed dissatisfaction with the tariff adjustment, calling it a significant burden on both individuals and small businesses. He specifically highlighted the potential impact on Point of Sale (POS) operators and small-scale enterprises, whose operational costs are likely to rise significantly as a result. “This increase affects everyone—from large industries to small companies, including POS operators. It’s a substantial cost burden,” Ogunbanjo remarked.
While acknowledging the financial pressures on the telecommunications sector, Ogunbanjo proposed a more modest increase of 5% to 10% as a fairer alternative. “We understand the challenges faced by the industry and have even agreed, albeit reluctantly, that a moderate increase of 5% to 10% would be acceptable. However, a 50% hike is excessive and unfair to subscribers already struggling with economic challenges,” Ogunbanjo explained.
Ogunbanjo also called on telecom operators to explore alternative methods of raising funds, such as Initial Public Offerings (IPOs), rather than imposing the financial burden on subscribers. “Operators could opt for an IPO, allowing Nigerians to invest in their companies. This would provide the needed capital without passing the cost onto already overburdened consumers,” he suggested.
NATCOMS has confirmed plans to take legal action to challenge the tariff hike, stating the additional strain it would place on consumers. In response to the criticism, the NCC defended the 50% tariff adjustment as a necessary step to address escalating operational costs within the telecommunications sector.
A statement signed by Dr. Reuben Muoka, the NCC’s Director of Public Affairs, emphasized the importance of balancing consumer protection with the sustainability of the industry. “While some operators had requested a 100% tariff increase, the commission approved a maximum adjustment of 50% following extensive consultations with stakeholders,” the NCC stated.
The commission acknowledged the economic pressures faced by Nigerians and urged telecom operators to implement the new rates transparently and fairly.
The NCC also assured subscribers that the tariff increase would bring long-term benefits, including improved service quality and network reliability. “These adjustments will support operators in investing in critical infrastructure and driving innovation, which will ultimately enhance service quality and connectivity for consumers,” the NCC noted.
