The National Association of Telecommunications Subscribers has threatened legal action over the Nigerian Communications Commission’s recent approval of a 50% increase in tariffs for telecommunications services.
On January 20, the NCC approved the tariff adjustment following a request from telecommunications operators such as the Association of Licensed Telecommunications Operators of Nigeria and the Association of Telecommunications Companies of Nigeria.
The operators had initially demanded a 100% increase in tariffs.
However, subscribers strongly objected to the NCC capping the adjustment at 50%.
The chairman of NATCOMS, Deolu Ogunbanjo, blasted the NCC for accepting the pricing rise without first engaging subscribers.
Although he called for more moderate changes, he acknowledged the difficulties facing the telecom sector.
“We proposed a modest increase of 5 to 10% to keep the industry afloat without putting undue strain on our subscribers,” Ogunbanjo said.
“A 50% increase is totally unacceptable. This will affect all businesses, from large corporations to small businesses like point-of-service (POS) operators, by significantly increasing their operational costs,” he added.
Ogunbanjo stressed the importance of the telecommunications sector, noting its contribution to the Gross Domestic Product .
Explaining Nigeria’s GDP and its role in daily life, he said, “We depend on telecommunications for banking, education and even meetings.
“We understand the challenges facing the industry and are ready to support its growth, but this increase is excessive,” he said.
He also urged that operators consider alternative fund-raising strategies, like as public offers, rather than depending entirely on tariff increases.
“Operators can generate capital through initial public offerings (IPOs), allowing Nigerians to invest in their companies.
“This approach is more sustainable than charging subscribers high tariffs,” Ogunbanjo said.
Earlier, the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, had said tariff hikes would not exceed 60% given the potential impact on Nigerians and the economy.
Despite this assurance, Ogunbanjo reiterated NATCOMS’ opposition to the 50% price increase.
“We will challenge this in court. Subscribers should not have to bear the brunt of the industry’s financial woes,” he said.
The NCC and operators are yet to respond to NATCOMS’ legal threats.
