telco subscribers Nigeria

Telco Subscribers Threaten to Sue Over 50% Tariff Hike

By Adedapo Adesanya

An association representing the interest of telecommunication subscribers in Nigeria has rejected the 50 per cent tariff increase announced by the Nigerian Communications Commission (NCC) and has threatened legal action.

On Monday, the NCC approved a 50 per cent tariff increase for telecom operators in the country, the first since 2013.

The 50 per cent call was lower than the 100 per cent recommended by the other stakeholders, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), which has members like MTN and Airtel.

Now in response, the National Association of Telecoms Subscribers (NATCOMS) has faulted the move, saying the 50 per cent was too high and called for another review.

The associationโ€™s president, Mr Deolu Ogunbanjo, said on Channels Televisionโ€™s Lunchtime Politics, monitored by Business Post on Tuesday, that the body would approach the courts if thereโ€™s no reversal.

He noted that Nigerians are already bearing the brunt of a cost of living crisis, adding that the 50 per cent hike which was supposed to reprieve from the initial 100 per cent recommendation, was still not acceptable.

โ€œIt is not it at all. It is so much for subscribers to bear. Already, we are grappling with a lot of things that are surrounding the business climate hereโ€ฆ fuel cost, electricity cost, and all thatโ€ฆ you are now looking at telcos asking for 100 per cent and NCC now is granting them 50 per cent It is a no-no,โ€ he said.

โ€œWe are definitely not going to accept this,โ€ he declared.

The NCC, announcing the hike on Monday, said the increase was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

โ€œโ€ฆOver 100 per cent requested by some network operators was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

โ€œThese adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commissionโ€™s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,โ€ the announcement statement noted.