Why Telcom Subscribers Oppose Tariffs Hike In Nigeria

The National Executive Committee of the National Association of Telecoms Subscribers (NATCOMS), rose from an emergency meeting on Tuesday, December 31, 2024, kicking against the proposed 40 per cent hike in tariffs for telecommunications subscribers in the country.

NATCOMS specifically said that the proposed increment is a deliberate official policy to price telecom services out of the reach of the generality of the citizens of Nigeria.

It noted that the implication of the foregoing is the fact that the proposed increment will now make telecommunication services more expensive by 40% in the New Year, adding that if the controversial Tax Reforms Bills sail through, telecommunication services will now attract a 12.5% tax rate, which would automatically price two-thirds of telecom services subscribers out of the telecom services market.

The proposed 40 per cent hike which is yet to be officially denied or confirmed by the Nigerian Communications Commission (NCC), is expected to come into effect in 2025.

However, the national executive of NATCOMS in a communique signed on Tuesday, December 31, 2024 by Chief Adeolu Ogunbanjo, and Mr. Bayo Omotubora Esq, National President and Secretary respectively, stressed that any plan to hike telecom service tariffs would be very insensitive particularly in the face of the current economic hardship faced by Nigerians.

NATCOMS therefore urged telecom operators to seek another alternative instead of a tariff hike to address rising operating costs, stressing that a unanimous resolution arising therefrom its meeting was a total objection to the planned tariff hike.

The communique further stated; “The Nigerian Communications Commission (NCC), as recently published in both the print and electronic media, gave an approval to the Telecommunication Service Operators to hike their tariffs, and the approved increment would see the current tariffs rise by about 40 percent. This Association considers the decision of the NCC as very insensitive and not in the interest of Telecoms Services Consumers.

“The unrelenting rise in prices of goods and services in the country has made life extremely difficult for the generality of citizens who are the consumers of telecom services. The new increment is, therefore, one additional burden too many,” it said.
NATCOMS further said; “Under the new tariff 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 today.

“This, undoubtedly, is against public interest, contrary to the false narrative of NCC that described the recent adjustments as pro public interest.

“The cumulative effect of the pending suit and the public outcry prompted the federal government to suspend the implementation of the excise duty charge, but the charge is now part of the controversial tax reform bills now pending before the National Assembly.

“This is a complete negation of the statutory duty of NCC to protect the interest of Telecom Services Consumers. We are aware of the arguments of the telecom operators that there has not been any tariff increment in a decade, multiple levies slammed on them by different levels/tiers of government, and the dollarization of the costs of their equipment.

“But if the truth be told, there are many other avenues through which the operators can generate funds to meet their rising operational costs without putting an unbearable burden on their consumers.

“The Nigerian Stock Exchange Market, for instance, is a veritable avenue for the operators to raise funds to meet their costs requirements. The operators should bring part of the ownership of their companies to their subscribers through public offers,” NATCOMS demanded.

The telecom operators under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) in a statement on Sunday by its chairman, Gbenga Adebayo, demanded an immediate review of telecom tariffs to save the sector from an imminent collapse.

The Nigerian Communications Commission (NCC), has yet to make an official statement on the dicey issue of hike in tariff in telecoms services.