Telecom subscribers reject planned tariff hike, warns of economic implications

Nigeria’s telecom subscribers have rejected the planned tarrif increment by telecom operators effective 2025.

The new increase if implemented could see tarrif upped by 40 percent.

Reacting to the development in a communique jointly signed by the National President, Chief Adeolu Ogunbanjo and the Secretary, Barr. Bayo Omotubora on Tuesday, the National Association of Telecoms Subscribers, NATCOMS clearly stated that it would oppose the new tariff hike, saying it would compound the hardship already unleashed on subscribers as a result of the subsidy removal.

The association urged telecom operators to explore alternative to tariff hike or be prepared to face the consequences its action.

“The National Exco of the National Association of Telecoms Subscribers (NATCOMS) held an emergency meeting on the 31st of December, 2024, on the planned tariff hike of telecommunication services. A unanimous resolution arising therefrom is our total objection to the planned tariff hike.

“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.

“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 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 telecom services out of the reach of the generality of the citizens of this country.

“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.

“The implication of the foregoing is this: The new increment will now make telecommunication services more expensive by 40% in the New Year, and if the controversial tax bills sail through, telecommunication services will now attract a 12.5% tax rate, and by then two-thirds of telecom services subscribers would have been priced out of the telecom services market. 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,” it said.

Recall that 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 shutdown.

Meanwhile, official sources within NCC had denied claims that the commission had approved a fresh telecoms tariff hike from 2025.