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Telecom Fury: Subscribers Sue Over Massive 50% Tariff Hike!

Published 19 hours ago3 minute read
Telecom Fury: Subscribers Sue Over Massive 50% Tariff Hike!

The Nigerian Communications Commission (NCC) has recently approved a significant 50 percent adjustment in telecommunications tariffs, a decision that has immediately ignited widespread opposition from key subscriber associations across the nation. This approval, which will see the cost of phone calls rise to N16.5 per minute and data to N431.25 per gigabyte, is explained by the NCC as a necessary measure to bridge the widening gap between escalating operational costs faced by telecom operators and long-stagnant tariffs, ultimately aiming to ensure the sustainability of the industry.

Foremost among the dissenting voices is the National Association of Telecommunications Subscribers (NATCOMS), which has unequivocally announced its intention to challenge the NCC’s decision in court. Mr. Deolu Ogunbanjo, President of NATCOMS, articulated the association’s belief that a modest increase of 5 to 10 percent would have been a far more reasonable and acceptable adjustment. He highlighted the severe economic repercussions of a 50 percent hike, particularly on small businesses, such as Point of Service (POS) operators, and the general populace of telecom consumers, asserting that it would invariably increase their operational costs. While acknowledging the financial pressures burdening telecom operators, Ogunbanjo suggested that alternative funding mechanisms, such as Initial Public Offerings (IPOs) allowing Nigerians to invest in these companies, should be explored instead of placing such a heavy burden directly on consumers.

Adding to the chorus of disapproval, the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) also vehemently rejected the tariff increase. ATCIS pointed out that the NCC’s approval contradicts a prior agreement reached during a pivotal meeting held on January 9, 2025, involving the Nigerian Communications Commission and various stakeholders. According to ‘Sina Bilesanmi, National President of ATCIS-Nigeria, this agreement stipulated that all stakeholders, including subscriber representatives, would be adequately consulted before any tariff hike could be implemented. Bilesanmi further elaborated that during the January meeting, Mobile Network Operators (MNOs) were specifically tasked with organizing enlightenment programs and engaging in discussions with subscriber representatives regarding potential percentage increases, with the understanding that final approval from the NCC would only follow these consultations.

In its official statement, signed by Director of Public Affairs Reuben Muoka, the NCC reiterated its commitment to striking a delicate balance between protecting the interests of telecom consumers and safeguarding the sustainability of the telecommunications industry, which includes a vast ecosystem of indigenous vendors and suppliers. The Commission emphasized that the approved 50 percent adjustment is significantly lower than the over 100 percent increase initially requested by some operators, underscoring its efforts to mitigate the impact on consumers. While expressing empathy for the financial pressures faced by Nigerian households and businesses, the NCC mandated telecom operators to implement the new tariffs transparently, educate consumers clearly on the new rates, and concurrently demonstrate measurable improvements in service delivery. Furthermore, the Commission reaffirmed its dedication to ensuring that tariff rates remain strictly within the guidelines established in its 2013 Cost Study. This decision by the NCC followed weeks of intense deliberation, sparked by persistent demands from telecom operators for a substantial tariff increase to cover their rising operating costs and ensure viability.

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