NATCOMS to Sue NCC Over 50% Telecom Tariff Increase

The National Association of Telecoms Subscribers (NATCOMS) has announced plans to sue the Nigerian Communications Commission (NCC) over its recent approval of a 50% increase in telecommunications tariffs. This decision, made on January 20, comes after a push from major telecom operator associations, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), who lobbied for higher rates to address industry financial concerns. However, the NCC decided on a 50% hike, which is half of what the operators had originally requested.

Deolu Ogunbanjo, the president of NATCOMS, criticized the move, particularly the lack of involvement from subscribers in the decision-making process. He called the tariff increase “unacceptable” and said the 50% hike was too steep for consumers already grappling with economic difficulties.

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“We understand the challenges the telecom industry faces, but a 50% increase is excessive. We had proposed a more modest increase of 5% to 10%, which would have been more reasonable,” Ogunbanjo stated. He further warned that the tariff increase could have serious implications for businesses, particularly small-scale enterprises such as point-of-service (POS) operators, who would see their operational costs soar.

The telecom sector plays a crucial role in Nigeria’s economy, impacting a variety of industries, including banking, education, and e-commerce. Ogunbanjo pointed out that many sectors rely on telecom services for daily operations, from online meetings to financial transactions. He emphasized that while it is essential to sustain the telecom industry, a 50% increase would have negative consequences for both consumers and businesses.

To address the financial concerns of telecom operators, Ogunbanjo suggested that they consider alternative funding options, such as raising capital through an Initial Public Offering (IPO) on the Nigerian Exchange. “Rather than imposing such a significant tariff hike, the industry could explore options that allow Nigerians to invest in these companies,” he proposed.

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Earlier, Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, had stated that any tariff increase should not exceed 60% to avoid hurting economic growth. Tijani also noted that a full 100% increase, which telecom operators had initially requested, would be unbearable for Nigerians.

Despite these concerns, the NCC has moved forward with the 50% hike, which NATCOMS is now preparing to challenge in court. Ogunbanjo made it clear that the association will fight the decision, urging subscribers to join the legal battle. “This decision is not in the interest of consumers. We will take legal steps to ensure that the burden is not passed on to subscribers who are already struggling with the economic challenges in the country,” he said.