By DAYO ADESULU
The National Association of Telecommunications Subscribers (NATCOMS) has announced plans to take legal action against the Nigerian Communications Commission (NCC) following the commission’s refusal to reduce its 50% tariff hike approval to 10%.
NCC Rejects Appeal for Tariff Reduction
The National President of NATCOMS, Mr. Deolu Ogunbanjo, revealed on Thursday that the association had formally appealed to the NCC on January 24, 2025, proposing a more balanced tariff increase of 10%. This adjustment, he argued, would allow telecom operators to generate revenue while minimizing the financial burden on consumers.
However, the NCC declined to reconsider its decision, prompting NATCOMS to prepare for legal action against the regulatory body.
Consumer and Economic Impact of the 50% Hike
Ogunbanjo emphasized that the approved 50% tariff hike could have devastating consequences for consumers and the Nigerian economy. Key concerns include:
- Small Businesses at Risk: Many SMEs may struggle to afford increased telecom costs, potentially leading to shutdowns.
- Higher Costs for Consumers: Businesses could pass the additional expenses onto consumers, exacerbating financial strain.
- Disruptions to Education: Students who depend on data for academic activities may face challenges in accessing educational resources.
- Senior Citizens Affected: Many elderly individuals rely on telecommunications for staying in touch with family, and increased costs may push them toward outdated communication methods.
NATCOMS Urges Alternative Revenue Strategies
Ogunbanjo argued that telecom operators have alternative ways to generate capital rather than transferring the burden onto consumers. These include:
- Aggressive debt collection from defaulters.
- Improved intra-industry debt management.
- Exploring loan financing options.
He pointed out that telecom operators have historically reported massive profits, which should be reinvested in service improvements rather than imposing excessive price increases on subscribers.
NCC Defends Tariff Adjustment
The NCC, Nigeria’s telecom regulatory authority, justified its approval of a 50% tariff hike—although it was lower than the 100% increase requested by telecom operators. The commission stated that the adjustment was necessary due to rising operational costs in the sector.
The NCC cited Section 108 of the Nigerian Communications Act, 2003 (NCA), which grants it the power to regulate and approve tariff rates. According to the commission, the decision followed extensive consultations with both public and private sector stakeholders.
NCC: Tariff Hike Aimed at Improving Services
Despite public backlash, the NCC assured consumers that the tariff hike would ultimately benefit them by:
- Enhancing network quality and connectivity.
- Improving customer service experiences.
- Encouraging further investment in telecom infrastructure.
“The NCC recognizes the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments,” the commission said in a statement.
Next Steps: NATCOMS vs. NCC Legal Battle
With the NCC rejecting its appeal, NATCOMS is set to file a lawsuit challenging the tariff hike, signaling a potential legal showdown that could shape the future of Nigeria’s telecommunications industry.
Meanwhile, Ogunbanjo has urged the Nigeria Labour Congress (NLC) to reconsider its planned February 4 protest against the tariff increase, advocating for continued dialogue with the government and regulatory authorities.
As the battle over telecom pricing unfolds, consumers eagerly await the final outcome, hoping for a resolution that balances affordability with industry growth
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