Calls for immediate reversal
From Adanna Nnamani, Abuja
The National Association of Telecoms Subscribers (NATCOMS) has strongly opposed the purported recent approval of a tariff hike by the Nigerian Communications Commission (NCC), warning that the increase will lead to a 40% rise in telecommunication service prices, further burdening Nigerian consumers.
While a source within the NCC previously dismissed rumours of a proposed hike set for January 2025, telecom companies argue that the current pricing does not reflect Nigeria’s economic conditions, citing inflation, currency depreciation, and rising equipment costs.
They also noted that there have been no tariff increases in the past decade and highlighted the financial burden from various government levies.
In a communiqué released following an emergency meeting held recently, NATCOMS criticised the NCC’s consideration of the tariff increase.
In the document signed by its National President, Adeolu Ogunbanjo, and National Secretary, Barr. Bayo Omotubora, the association described the decision as “insensitive” and argued that it would further worsen the economic hardship facing ordinary Nigerians.
“Under the new tariffs regime, a voice call will rise from N11.00 to N15.40 per minute, short message services will jump from N4.00 to N5.60 and
“One GB data bundle will move from N1,000 to N1,400. This represents additional digital costs consumers will have to square up with at the beginning of a new year among other harsh economic realities of Nigeria of today. This, undoubtedly, is against public interest contrary to the false narrative of NCC that described the recent adjustments as pro public interest.
“This Association sees the increment as an official policy to price telecoms services out of the reach of the generality of the citizens of this country,” it stated.
NATCOMS noted that the decision by the NCC will have a detrimental effect on telecom users, already struggling with rising costs of living. The association pointed out that this price hike is an additional burden that comes at a time when Nigerians are grappling with high inflation, increased taxes, and soaring living expenses.
NATCOMS strongly disagreed with the NCC’s justification that the tariff increase is in the public interest. The association described the hike as a clear departure from the NCC’s duty to protect telecom consumers, warning that the price rise could price out millions of Nigerians from accessing basic communication services.
“Telecom services are already becoming less affordable for the average Nigerian. If this tariff increase goes through, we risk seeing many people completely priced out of the market,” it said.
The association also raised concerns about the cumulative effect of other recent cost increases, such as the 50% VAT hike on telecom services imposed by the Finance Act of 2019 and the excise duty charge introduced by the Federal Government in 2020. NATCOMS warned that the combined effect of these changes could make telecom services prohibitively expensive for many Nigerians.
The association also highlighted the ongoing legal battle over the excise duty charge, which it has challenged in court on the grounds of double taxation.
It noted that the case is currently pending before the Federal High Court, with a hearing scheduled for March 2025.
While NATCOMS acknowledged the telecom operators’ claims of rising operational costs, including government-imposed levies and the increasing dollarisation of telecom equipment, the association argued that there are other ways for operators to meet these costs without burdening consumers.
“The Nigerian Stock Exchange Market, for instance, is a veritable avenue for the operators to raise funds to meet their cost requirements. The operators should bring part of the ownership of their companies to their subscribers through public offers. The decision of some of the operators to keep their companies as a private going concern is against public interest and the consumers should not be made to bear the burden of such a decision.
“We, therefore, call on the NCC to null the approval given for the tariff hike and advise the operators to embrace other options of generating funds for their operations,” it added.
Source: Daily Sun
