The National Association of Telecoms Subscribers (NATCOMS) has rejected the 50% tariff hike approved by the Nigerian Communications Commission (NCC) and threatened to take legal action.
The NCC’s decision was made in response to requests from telecommunications companies (telcos) to increase tariffs due to rising operational costs.
Deolu Ogunbanjo, President of NATCOMS, expressed his dissatisfaction with the NCC’s decision, stating that the commission did not consult with subscribers before approving the tariff hike.
Ogunbanjo suggested that a marginal increase of 5% to 10% would have been more acceptable.
“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 said. He emphasized that the telecoms sector is crucial to Nigeria’s economy, contributing significantly to the country’s GDP.
Ogunbanjo proposed alternative solutions for telcos to raise funds, such as exploring the Nigerian exchange or issuing an Initial Public Offer (IPO). “However, a situation where a whole 50% is granted for a tariff hike is not cheap, and it is a no! no! from us subscribers,” he said.
The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, had earlier stated that a tariff hike would not exceed 60%. Tijani warned that a 100% increase would harm Nigerians and hinder the country’s economic growth.
The NCC’s approval of the 50% tariff hike has sparked controversy, with NATCOMS vowing to challenge the decision in court. “I mean, for what we are already going through, no for us, we will challenge this in court,” Ogunbanjo said.
