Nigeria to See Telecom Tariff Increase Soon, Says Minister

By DAYO ADESULU

Key Announcement on Telecom Tariffs

The Nigerian Communications Commission (NCC) is set to hold a key stakeholders’ meeting in Abuja on Thursday at 2 PM to address the proposed 100% telecom tariff hike. The meeting will involve discussions among consumer advocacy groups, telecom operators, and other industry stakeholders to weigh the impact of the proposed price increase.

Stakeholder Reactions

• Adeolu Ogungbanjo, President of the National Association of Telecommunications Subscribers (NATCOMS), has confirmed his attendance. He has been outspoken about the hike, advocating for a balanced approach to mitigate the impact on financially burdened consumers.
• Sola Ajulo, President of the Consumer Advocacy Foundation of Nigeria, also stressed the importance of this meeting, urging all stakeholders to agree on terms that will guide the government’s decision on the tariff increase. She emphasized that while operators face economic pressures, steep increases could severely hurt consumers. Ajulo suggested that a gradual increase with measurable conditions may be a more reasonable approach.

Justifications for the Proposal

Telecom operators argue that the hike is necessary to address rising operational costs caused by:

• Increasing fuel prices.
• Depreciation of the naira.
• Escalating costs of maintaining and upgrading telecom infrastructure.

The operators have committed to using the additional revenue from the hike to fund infrastructure upgrades and service quality improvements, a condition set by the NCC.

Concerns from Consumer Advocacy Groups

While consumer groups like NATCOMS acknowledge the financial challenges faced by telecom operators, they caution that a significant price increase could exacerbate the financial strain on Nigerians. They are calling for a more reasonable approach that would balance the need for sector investment with consumer welfare.

Next Steps

The NCC’s decision following Thursday’s meeting will be crucial in shaping telecom pricing in Nigeria. The regulator has committed to ensuring that any tariff increases are accompanied by necessary infrastructure investments to ensure compliance with agreed-upon conditions.

Key Takeaways

• Meeting Date & Time: Thursday, 2 PM, Abuja.
• Proposal: A 100% telecom tariff hike proposed by operators.
• Stakeholder Concerns: Focus on affordability and the welfare of consumers.
• Telcos’ Commitment: Additional revenue to be invested in infrastructure upgrades and service quality improvements.

The outcome of this meeting will have significant implications for Nigeria’s telecom sector and its consumers.