…As telcos begin implementation Amid unabated opposition
By Paul Effiong and Charles Ebi, Abuja
House of Representatives has urged the Minister of Communications, Innovation and Digital Economy, Bosun Tijani and the Nigerian Communications Commissions, NCC, to immediately halt tariff hike in telecommunications sector until service providers improve their services.
This followed a motion of urgent public importance moved during plenary yesterday by Oboku Oforji on the need to halt the recent increase in tariffs by the telecom companies in Nigeria.
In his lead debate, Oforji recalled the announcement by the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani that telecommunication tariffs will soon be increased in the country.
“According to the Minister, consultations are ongoing as some of these companies have agitated to increase tariffs to as high as 100%. He, however, said it would not be a 100% increase and that the Nigerian Communications Commission would approve the new tariffs and announce them in due course.
“The argument of the telecommunications companies for the hike includes the cost of investment, better networks, and increasing demand for digital services across sectors such as education, banking, and healthcare amongst others.
“The telecommunications companies have been advocating for the hike for the last eleven years, according to the Association of Licensed Telecom Operators of Nigeria, ALTON and the Association of Telecommunication Companies of Nigeria ,ATCON.
Speaking during the debate some lawmakers said they have contrary view as many Nigerians are currently in pain because of the proposed hike in electricity tariff.
“They argued that the telcos need cost-reflective tariffs in the face of adverse economic reality like record inflation of 34.6% in November 2024 and losses resulting from foreign exchange fluctuations.
“The National Association of Telecoms Subscribers has rejected the proposed increase in tariffs, describing it as insensitive and a further burden on consumers already grappling with economic hardship, and poor network service delivery.
“It is imperative that the telecommunications companies improve on their service delivery ,poor network, which Nigerians have been yearning for in years, before embarking on the increase in their tariffs.
“The far-reaching effects of these price hikes will deepen financial struggles for the average Nigerian, threaten the country’s vision of leveraging technology to drive economic revival, exacerbate poverty, and widen existing inequalities, hitting lower-income families the hardest.
“Affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e-governance. Informal sector workers who depend on affordable mobile data to access gig work opportunities may find it harder to stay connected.
Meanwhile, MTN has increased the price of its data subscriptions as telecommunications operators in Nigeria have begun the implementation of the 50% price increment recently approved by the Nigerian Communications Commission.
The revised MTN data prices show that MTN’s 1.8GB monthly plan now goes for N1,500.
This replaces the previous 1.5GB plan priced at N1,000.
The 20GB plan has been adjusted to N7,500, up from N5,500, while the 15GB plan now costs N6,500, a rise from N4,500.
While other mobile operators comprising Airtel, Globacom, and 9mobile are yet to update their data prices as of the time of filling this report, AljazirahNigeria can confirm that all the networks are now charging N6.00 for text messages, instead of the previous N4.00.
The increment in the price of text message reflects the 50% approved by the NCC.
According to telecom industry sources, the telcos got the final approval for their new tariff plans on Monday and all the operators are in the process of adjusting their data and voice plans.
Speaking at a forum two weeks ago, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr. Gbenga Adebayo disclosed that all the operator had sent their new tariff plans to the NCC and were awaiting approval.
MTN and other Telecoms providers had demanded a 100% hike but the NCC and other regulatory agencies declined the request, citing economic hardship.
“The adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability”, NCC Spokesperson, Reuben Mouka said.
The NCC had on January 20 announced that it had approved a 50% tariff adjustment for telecom operators, citing rising operational costs and the need to sustain the industry.
The Commission in a statement signed by the Director of Public Affairs, Reuben Muoka, said the decision underlines the Commission’s regulatory role under Section 108 of the Nigerian Communications Act, 2003.
However, the National Association of Telecommunications Subscribers ,NATCOMS, has threatened to challenge the approved tariff hike in court.
This decision, according to NATCOMS, was made without adequate consultation with key stakeholders, including subscribers.
Meanwhile, the Presidency has defended the 50% hike in tariff approval granted to the telecom operators, saying it was necessary to keep the telecom industry viable.
It, however, noted that the approval does not mean that the telecom operators must immediately increase their tariffs by 50%.
“It is important to highlight that this approval does not mean automatic increases in tariffs. Operators are free to maintain their current rates if they find them sustainable”, the President Bola Ahmed Tinubu Media Centre, stated in a recent statement.
While describing the approval as an important step aimed at addressing critical challenges in the telecommunications sector, the Centre noted that the telecom industry in Nigeria had operated under static price mechanisms for over a decade as prices have remained unchanged since 2013, despite significant increases in the cost of operations.
