Telecoms Subscribers to Challenge 50% Telecoms Tariff Hike in Court
Nigerians are preparing to take legal action against the federal government following its approval of a 50% increase in telecommunication tariffs, including calls, data, and other services.
The National Association of Telecoms Subscribers (NATCOMS) and the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN) have expressed their opposition to the tariff hike. NATCOMS President Adeolu Ogunbanjo and AMMBAN spokesperson Ogungbayi Ganiyu made these statements in separate interviews on Monday.
The Nigerian Communications Commission (NCC) approved the tariff increase after the Minister of Communications and Digital Economy, Bosun Tijani, hinted at a possible 30-50% hike during discussions with telecom operators. The operators initially proposed a 100% increase, citing rising operational costs.
The new tariff regime means Nigerians will pay N16.5 per minute for calls, up from N11; N6 for SMS, up from N4; and N431.25 for one gigabyte of data. The approval comes 13 years after the NCC last adjusted the telecom price template in 2013.
Ogunbanjo criticized the decision, describing it as exploitative and harmful to subscribers who are already burdened by high living costs. He stated that telecom subscribers had agreed to a modest increase of 5-10% but rejected the NCC’s 50% approval.
“This hike will worsen the hardship faced by Nigerians,” Ogunbanjo said. “We understand the challenges in the telecom sector, but a 50% increase is excessive. We will challenge this in court because it will impoverish Nigerians further.”
Ogunbanjo highlighted that the hike could lead to increased costs across various sectors, from Point of Sales (POS) operators to large companies, exacerbating inflation and poverty levels in the country.
The telecom tariff hike is also expected to impact POS operators, who rely heavily on telecom services for their operations. Ogungbayi Ganiyu stated that the increased costs might force members of AMMBAN to raise service charges, although they are exploring ways to absorb the additional expenses.
“The telecom hike will have a significant effect on our operations,” Ganiyu said. “We might have no choice but to adjust service charges, but we are still assessing the situation.”
Critics argue that the tariff hike, set to take effect in February 2025, will further strain Nigerians, many of whom are grappling with high fuel prices, transportation costs, and inflation. The hike coincides with other economic policies under President Bola Ahmed Tinubu’s administration that have faced backlash for allegedly worsening poverty levels.
Telecom operators, meanwhile, have defended the tariff increase, citing the rising cost of maintaining infrastructure and inflationary pressures. They have warned that without the hike, the industry could face operational shutdowns.
As Nigerians prepare to challenge the policy in court, the debate highlights the tension between ensuring affordable access to telecom services and sustaining the industry in challenging economic conditions.
