Telecoms Subscribers Group Plans Lawsuit Over Proposed Tariff Hike
The National Association of Telecommunications Subscribers (NATCOMS) has announced plans to file a class-action lawsuit against telecommunications companies over a proposed tariff increase that could double service costs across Nigeria.
Adeolu Ogunbanjo, the National President of NATCOMS, stated that the group intends to take legal action if telecom operators proceed with the hike without exploring alternative revenue-generation methods. Ogunbanjo criticized the proposed 100 percent tariff increase as excessive and unsustainable, urging the Nigerian Communications Commission (NCC) to reject the telecoms’ request.
“We initially expected a marginal increase of 5 percent to 10 percent. Then the NCC considered a 40 percent increase. Now, telecom operators are proposing a 100 percent increase, and we are saying no,” Ogunbanjo stated.
The proposed tariff hike would increase the cost of voice calls from N11 per minute to N22, SMS charges from N4 to N8 per message, and the price of a 1GB data bundle from N1,000 to N2,000. The NCC is currently reviewing the proposal but has not yet made a final decision.
Ogunbanjo warned that if the NCC approves the proposed hike, NATCOMS would take the matter to court. “This is a sector of national interest, and we will not hesitate to seek legal redress to protect subscribers’ rights,” he emphasized.
He also suggested that telecom operators consider exploring alternative funding methods, such as raising funds through the capital market. “They can go to the Nigerian Stock Exchange to raise funds. Nigerians will buy their shares, and I am confident it will be oversubscribed. MTN has already done this successfully; other operators like Glo and Airtel should follow suit,” Ogunbanjo added.
While acknowledging the financial challenges faced by telecoms, including inflation and rising operational costs, Ogunbanjo stressed that subscribers should not bear the full burden of these challenges without the operators first exploring other viable options.
“If the operators cannot meet their financial needs after raising funds through the stock exchange, they can return to the table for discussions,” he said.
NATCOMS argued that the proposed tariff hike would disproportionately affect low-income Nigerians and could hinder access to essential communication services.
In a recent statement, Karl Toriola, CEO of MTN Nigeria, confirmed that telecom companies had formally submitted requests to the NCC for a 100 percent tariff increase. “We’ve put forward requests of approximately 100 percent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola said.
The outcome of the NCC’s review of the proposal remains pending, but the situation has sparked widespread concern among subscribers who fear that the hike could strain their access to telecom services.
