The National Association of Telecom Subscribers, NATCOMs, and the Socio-Economic Rights and Accountability Project, SERAP, among others, have threatened to challenge the decision in court if it is not reversed.
NATCOMS said the most its members could accept is a marginal increase of between five and 10 per cent, not 50 per cent, which will affect both the common people and small businesses in the country.
President of the association, Chief Deolu Ogubanjo said: “We are alarmed that the NCC will approve a whopping 50 per cent price hike for operators without considering the implications to the common subscribers and the small businesses in the country.
‘’What we envisaged was just a marginal increase and if it wasn’t enough, the telcos can go the way of Independent Private Placements, IPOs, after all, Nigerians want to co-own some of the telcos too.
Alternatively, they can also consider settling the huge debts they owe to one another, as well as persuading the banks to also pay the huge USSD debts they owe.
“All these will have put them back in business. This increase is outrageous and we will challenge it in court” he added.
SERAP on its part immediately after the announcement, issued a 48-hour ultimatum to the Federal Government and telecommunications companies (telcos) to reverse the recent 50% hike in the cost of calls and data, describing it as “unlawful”.
The organization said it would take legal action if it is not rescinded within the stipulated time frame
SERAP said: “The Tinubu administration and telcos must immediately reverse the unlawful increase in calls and data costs. We’ll see in court if the 50% tariff hike is not reversed within 48 hours.”
Meanwhile the Association of Telecom Companies of Nigeria, ATCON, said these threats were not needed, considering the rigorous consultation that happened before the increment was made.
ATCON’s position was also corroborated by the Association of Telephone, Cable Tv and Internet Subscribers of Nigeria, ATCIS, a group which claims to be the authoritative voice for the protection of the interests and rights of Telephone, Cable TV, and Internet Subscribers in Nigerian.
A statement by ATCON President, Tony Izuagbe Emoekpere, said: “The decision by the NCC to increase telecom tariffs by 50 percent reflects the Commission’s recognition of the mounting operational challenges faced by operators and the need to sustain their ability to deliver quality telecommunications services to Nigerians.
“We commend the NCC’s collaborative approach and its recognition of industry realities and we eagerly await the release of the official Determination Document as enshrined in the Nigerian Communications Act 2003, which will provide the necessary clarity on the specifics of this decision. This document will be instrumental in guiding operators and stakeholders on the implementation of the adjustments and the accompanying expectations.
“For over a decade, tariff rates have remained static, despite escalating costs driven by inflation, foreign exchange volatility, and the significant investments required to meet growing consumer demand. These realities have placed operators under immense financial pressure, threatening the sustainability of the telecommunications sector, which is a critical enabler of Nigeria’s digital economy.
“While the approved tariff adjustment, capped at a maximum of 50%, does not fully address the operators’ request for a 100% increase, we understand that this is a step towards bridging the gap between operational costs and revenues. This adjustment will enable operators to continue investing in infrastructure, expand coverage, and improve service quality for the benefit of all Nigerians.
“ATCON in addition commends the NCC for its consultative approach in reaching a decision that balances the needs of consumers and operators. However, we encourage the Commission to sustain its engagement with operators to tackle ongoing challenges that hinder their operational efficiency.
“We also want to reassure the Nigerian public that this adjustment will ultimately translate into significant benefits for consumers. Operators are committed to reinvesting these additional revenues into improving network quality, expanding digital service access, and delivering an enhanced customer experience.”
This raises significant concerns among consumers and businesses. It may be a necessary move to enhance infrastructure investment, improve service quality, and support telecom firms to maintain operations amidst rising costs. However, such a steep hike could place considerable financial strain on consumers which could lead to reduced accessibility for low-income users, exacerbating the digital divide and hindering social and economic growth. Govt. needs to consider the immediate financial impact on citizens and businesses. FG should dialogue with consumers, service providers, and industry experts, to find a more equitable solution.
