Telecom subscribers reject 50% tariff hike, threaten to sue NCC

• Telecom subscribers have rejected the approved 50 per cent tariff hike
• They also threaten to sue the Nigerian Communications Commission
• The subscribers advised telecom operators to explore capital market funding options

The National Association of Telecoms Subscribers (NATCOMS) has rejected the 50 per cent hike in tariff and threatened to sue the Nigerian Communications Commission (NCC).

The President of NATCOMS, Deolu Ogunbanjo, in an interview with journalists in Lagos on Monday, January 20, said the NCC did not carry subscribers along before arriving at the 50 per cent hike.

Ogunbanjo said NATCOMS suggested a five to 10 per cent increase in tariff as they understood the difficult situation faced by the telecoms industry.

He maintained that the NCC’s approval of a 50 per cent tariff hike is unacceptable by the association as it will impact every aspect of the economy.

Ogunbajo said, “This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators. It will increase operational costs.

“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it.

“So, that is why we painfully agreed that look, a moderate or marginal five per cent to 10 per cent increase will be fine.

“You know, we do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s Gross Domestic Product (GDP).

“So, we appreciate that. It’s painful, but we agreed. We said, okay, we will not mind if it is just a five per cent to 10 per cent increase.”

Subscribers threaten to sue NCC over 50 per cent hike

Ogunbanjo added that the association will sue the NCC over the 50 per cent tariff hike

He further advised telecom operators to explore capital market funding options rather than the 50 per cent hike in tariff.

Ogunbanjo said, “The industry operators can opt for an Initial Public Offer (IPO) for Nigerians to buy shares in their companies as a way of raising funds.

“However, a situation where a whole 50 per cent is granted for a tariff hike is not cheap and it is a no no from us subscribers.

“I mean, for what we are already going through, no for us, we will challenge this in court.”

NCC approved 50 per cent tariff hike

It will be recalled that the NCC approved a 50 per cent hike in tariff on Monday, January 20, after weeks of deliberations with telecom operators, in response to prevailing operational costs.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) raised several concerns and asked the NCC to upwardly review tariffs.

The operators asked for a 100 per cent hike so they could meet up with rising capital and operational costs.

They also noted that proceeds from the tariff increase would be channelled toward infrastructural upgrades and enhancing service quality.

However, on January 16, the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, said a hike in telecom tariffs would not exceed 60 per cent, saying that a 100 per cent increase would hurt Nigerians and hamper the country’s economic growth.

Explore capital market funding, not 100% tariff hike, subscribers urge telcos

Meanwhile, TheRadar earlier reported that telecommunications operators were urged to explore capital market funding as a sustainable option to address rising operational costs rather than implementing a proposed 100 per cent tariff hike.

President of the National Association of Telecommunications Subscribers (NATCOMS), Adeolu Ogunbanjo, said the proposed tariff hike would impose financial strain on consumers.