By Mariam Sanni, Abuja
Sequel to Nigerian Communications Commission, NCC, latest approval for tariff hike subscribers under the auspices of National Association of Telecoms Subscribers ,NATCOMS, has threaten to sue the NCC with a view to stoping implemention of the 50% hike.
Besides, the approval according to NATCOMS, was made without adequate consultation with key stakeholders, including the subscribers.
President of NATCOMS, Mr. Deolu Ogunbanjo, expressed dissatisfaction with the tariff increase approved by the Nigerian Communications Commission ,NCC.
On January 20, 2025, the NCC announced regulatory approval for telecom operators to raise tariffs by 50%.
According to NCC, the tariff hike will help the operators to improve the country’s telecommunication infrastructure.
The tariff hike follows agitations from the Association of Licensed Telecommunications Operators of Nigeria ,ALTON, and the Association of Telecommunications Companies of Nigeria ,ATCON, to review call tariffs upwards. The operators had requested 100% tariff raise.
In a twist of events, the President of NATCOMS, Deolu Ogunbanjo, said the NCC did not consult subscribers on the matter.
He kicked against the 50% hike, adding that a five percent to ten percent marginal increase was a better option.
He said, “This will affect everyone from the biggest industry to the smallest company, such as the Point of Service ,POS, operators.
“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it.
“So, that is why we painfully agreed that, look, a moderate or marginal five per cent to 10% increase will be fine.
“You know, we do not mind an increase if it is to salvage the industry that is helping us, which means so much to us. This is also contributing double-digit to Nigeria’s gross domestic product, GDP.
“So, we appreciate that. It’s painful, but we agreed. We said, okay, we will not mind if it is just a fto 10% increase.
He said telecom operators could raise funds through the Nigerian capital market by selling shares or other instruments.
He said, “The industry operators can opt for an Initial Public Offer, IPO, for Nigerians to buy shares in their companies as a way of raising funds.
“However, a situation where a whole 50% is granted for tariff hike is not cheap and it is a no from us subscribers. “I mean, for what we are already going through, no for us, we will challenge this in court”.
He described the decision as burdensome, particularly for small businesses and individual subscribers.
“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service ,POS, operators. It will increase operational costs,” Ogunbanjo stated.
He acknowledged the financial challenges facing the telecommunications sector but emphasised that a marginal increase of 5% to 10% would have been more acceptable.
“We painfully agreed that, look, a moderate or marginal five per cent to 10% increase will be fine. 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-digit to Nigeria’s Gross Domestic Product”, he added.
Ogunbanjo suggested that telecom operators explore alternative funding sources, such as Initial Public Offerings ,IPO, to raise capital instead of imposing a 50% tariff increase on subscribers.
“The industry operators can opt for an Initial Public Offer ,IPO, for Nigerians to buy shares in their companies as a way of raising funds.
Ogunbanjo confirmed that NATCOMS would challenge the decision in court, citing the financial strain the hike would impose on subscribers already grappling with economic challenges.
The Nigerian Communications Commission ,NCC, in a statement signed by its Director of Public Affairs, Dr. Reuben Muoka, justified the 50% tariff adjustment as a necessary measure to address rising operational costs in the industry.
“The NCC has prioritised striking a balance between protecting telecoms consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem”, the statement read.
The commission noted that while some operators had requested a 100% tariff increase, it approved a maximum adjustment of 50% after extensive consultations with stakeholders.
“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. To this end, the commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers”, the NCC stated.
The NCC assured subscribers that the tariff increase would enable operators to invest in infrastructure and innovation, leading to improved service quality.
“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity”, the Commission added.
In another development Human Rights Writers Association of Nigeria, HURIWA, has called for immediate dismissal of the Minister of Communications, accusing him of championing policies that frustrate and impoverish Nigerians.
This followed the authorisation of a 50 per cent hike in telecommunications tariffs.
The group in a statement issued yesterday by its National Coordinator Emmanuel Onwubiko strongly criticised the 50 perdhike in telecommunications tariffs, describing it as an illegal, unconstitutional, and oppressive policy that undermines Nigerians’ fundamental rights and freedoms.
The organisation accused the administration of President Bola Ahmed Tinubu of further impoverishing citizens through a policy that stifles freedom of expression and access to essential communication services.
HURIWA expressed outrage that the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, granted approval for such a steep increase, labeling it a “toxic and wicked authorization” that fails to consider the dire economic realities faced by millions of Nigerians.
According to the group, this tariff hike, set to take effect in February 2025, is among the highest globally and represents a direct attack on young and old Nigerians alike.
“It is becoming clearer by the day that this administration is systematically suppressing the rights of Nigerians”, HURIWA stated.
“The 50% hike in telecom tariffs is not just an economic assault; it is a calculated attempt to muscle freedom of expression and silence the voices of young Nigerians who rely on affordable internet and communication services to participate in the national discourse.”
HURIWA called on members of the civil society community to rise from their slumber and resist this policy.
“We urge civil society groups and well-meaning Nigerians to organize peaceful demonstrations to register their disagreement with this oppressive hike.
“It is an attack on the fundamental human rights of citizens, and silence in the face of this injustice is not an option”.
The organization revealed that it is already in discussions with its partners to stage peaceful protests, as permitted by the Nigerian Constitution.
“If this tariff hike is allowed to stand, it effectively marks the end of freedom of expression as we know it. Social media and other digital platforms, which are critical tools for advocacy, education, and civic engagement, will become inaccessible to millions”, HURIWA warned.
HURIWA accused the federal government of continuing a pattern of actions aimed at suppressing freedom of expression, beginning with the administration of former President Muhammadu Buhari.
“The APC government has always sought ways to curtail the voices of young people and limit their presence on social media. This 50% hike is an indirect way of achieving that sinister goal”, the group said.
It noted that the high cost of data, which is crucial for social media access, disproportionately affects unemployed and underprivileged Nigerians, effectively cutting them off from the digital world.
“This policy is a direct attack on young people and their constitutional, rights. It also threatens older Nigerians who rely on telecommunication services for critical needs, such as medical emergencies and staying connected with family members,” the group added.
HURIWA emphasized that the telecom tariff hike has devastating implications for various sectors, including health and education.
“Many elderly citizens in rural areas depend on phone calls to communicate their health challenges to their children. This hike will make it harder for them to access life-saving help.
“Similarly, students who rely on the internet for research and studies will face significant limitations, effectively stunting educational progress”,HURIWA argued.
The group described the policy as the most despicable act by the government and called for its immediate reversal. “This tariff hike is a direct attack on the Nigerian Constitution, and we categorically reject it. It is an assault on every aspect of national life, from education and healthcare to freedom of expression”, it said..
HURIWA called “for the immediate dismissal of the Minister of Communications”, accusing him of “championing policies that frustrate and impoverish Nigerian.”.
“If President Tinubu fails to act, he risks allowing his government to be remembered as one that enslaved its people through oppressive policies. Nigerians must not be reduced to perpetual slaves,” the group warned.
