Lagos, Jan. 8, 2025 -The National Association of Telecoms Subscribers (NATCOMS) has urged the Nigerian Communications Commission (NCC) not to approve any tariff hike as being demanded by telecom operators.
The association said it strongly opposed the purported recent approval of a tariff hike by the NCC.
It said the decision by the NCC to grant the tariff hike would have detrimental effects on telecom users as it would lead to 40% rise in telecommunication service prices.
NATCOMS made the pea to the NCC in a communique issued after an emergency meeting held in Lagos.
According to the communique signed by its National President, Adeolu Ogunbanjo and National Secretary, Barr. Bayo Omotubora, the association said the demand for tariff hike by the telecom operators was insensitive as it would further worsen the economic hardship facing ordinary Nigerians.
NATCOMS said under the proposed tariffs regime, a voice call would rise from N11.00 to N15.40 per minute, while short message services would jump from N4.00 to N5.60.
“One GB data bundle will move from N1,000 to N1,400. This represents additional digital costs consumers will have to square up with at the beginning of a new year among other harsh economic realities of Nigeria of today.
“This, undoubtedly, is against Public Interest contrary to the false narrative of NCC that described the recent adjustments as pro public interest.
“This Association sees the increment as an official policy to price Telecoms Services out of the reach of generality of the Citizens of this country,” it said.
It said the price hike would be additional burden at a time when Nigerians were grappling with high inflation, increased taxes, and soaring living expenses.
NATCOMS said it strongly disagreed with the NCC’s justification that the tariff increase is in the public interest.
It described the hike as a clear departure from the NCC’s duty to protect telecom consumers, warning that the price rise could price out millions of Nigerians from accessing basic communication services.
“Telecom services are already becoming less affordable for the average Nigerian. If this tariff increase goes through, we risk seeing many people completely priced out of the market,” it said
The association also raised concerns about the cumulative effect of other recent cost increases such as the 50% VAT hike on telecom services imposed by the Finance Act of 2019 and the excise duty charge introduced by the Federal Government in 2020.
NATCOMS warned that the combined effect of these charges could make telecom services prohibitively expensive for many Nigerians.
It also highlighted the ongoing legal battle over the excise duty charge, which it had challenged in court on the grounds of double taxation.
It said the case is currently pending before the Federal High Court with a hearing scheduled for March 2025.
While NATCOMS acknowledged the telecom operators’ claims of rising operational costs, including government-imposed levies and the increasing dollarization of telecom equipment, the association argued that there are other ways for operators to meet these costs without burdening consumers.
“The Nigerian Stock Exchange Market, for instance, is a veritable avenue for the operators to raise funds to meet their cost requirements. The operators should bring part of the ownerships of their companies to their subscribers through public offers.
“The decision of some of the operators to keep their companies as a private – going concern is against public interest and the consumers should not be made to bear the burden of such a decision.
“We, therefore, call on the NCC to null the approval given for the tariff hike and advise the operators to embrace other options of generating funds for their operations,“ it said.
