Kehinde Fajobi
The National Association of Telecoms Subscribers (NATCOMS) has rejected the Nigerian Communications Commission’s (NCC) approval of a 50% tariff hike for telecom operators, calling it unacceptable.
On Monday, the NCC approved the tariff increase following requests by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), who had sought an upward review of telecom rates.
However, NATCOMS president Deolu Ogunbanjo expressed strong opposition to the hike, highlighting the already heavy burdens faced by consumers.
“It 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 here – fuel cost, electricity cost, and all that – you are now looking at telcos asking for 100% and NCC now is granting them 50%.
“It is a no-no,” Ogunbanjo said during an appearance on Channels Television’s Lunchtime Politics on Tuesday.
“We are definitely not going to accept this,” he added.
Telecom operators had requested a 100% increase, citing rising operational costs and inflationary pressures in sectors like aviation and power. They argued that tariffs have remained unchanged for 11 years, threatening the quality of service.
“So, it addresses sustainability and also enables the regulators to hold the big stick on the issue of quality of service and allows us consequently to invest in giving the quality of service Nigerians deserve,” MTN Nigeria CEO Karl Toriola said during his appearance on Channels Television’s Sunrise Daily on January 3.
NATCOMS, however, disagrees with the telecom operators’ rationale. Ogunbanjo suggested alternatives like a 5 to 10% increase in tariffs or exploring other options such as initial public offerings.
“There are so many windows open to them,” Ogunbanjo said, urging a more reasonable approach.
He also threatened legal action, claiming that during a recent stakeholders’ meeting, no agreement had been reached on a tariff increase.
“To be quite honest, it is a bit shocking,” Ogunbanjo concluded.