The National Association of Telecommunications Subscribers (NATCOMS) announced on Monday that it intends to legally contest the Federal Government’s decision to permit telecommunications operators to raise tariffs by up to 50 percent. The announcement came amidst growing concerns over the financial burden this increase may place on consumers and businesses alike.
In an interview with the News Agency of Nigeria (NAN), NATCOMS President Mr. Deolu Ogunbanjo expressed dissatisfaction with the Nigerian Communications Commission’s (NCC) approach to the tariff adjustments. He indicated that NATCOMS was not adequately consulted during the decision-making process. “We understood the challenges the telecommunications sector faces and proposed a more modest increase of between five and ten percent. The current decision is unacceptable and will significantly impact both large industries and small enterprises, including Point of Service (POS) operators,” Ogunbanjo stated.
Ogunbanjo emphasized that the telecommunications sector has become vital to various aspects of daily life in Nigeria, from banking to education. “The sector contributes significantly to Nigeria’s Gross Domestic Product. While we recognize the need for some level of increase to support this essential industry, a 50 percent hike is simply too extreme,” he added.
In light of this situation, Ogunbanjo urged telecommunications operators to consider alternative funding methods, such as Initial Public Offerings (IPOs), rather than imposing drastic tariff hikes. “If operators truly require financial support, they should explore options that do not place such a heavy burden on subscribers,” he noted.
The NCC, which released a statement on the same day, defended its decision by stating it had approved the maximum 50 percent increment after extensive consultations with key stakeholders. Dr. Reuben Muoka, the Director of Public Affairs for the NCC, noted that the decision aims to balance the interests of consumers with the need for sustainability within the telecommunications industry, which faces increasing operational costs.
Despite acknowledging the challenges for Nigerian households and businesses, the NCC maintained that the tariff adjustments would enable operators to invest in infrastructure and innovation, ultimately leading to improved services for consumers.
As the situation unfolds, NATCOMS is poised to pursue legal action, challenging what they view as an excessive imposition on consumers. The outcome of this dispute could have significant implications for the future of telecoms pricing and consumer rights in Nigeria.
