The National Association of Telecoms Subscribers has rejected the proposed increase in telecommunication tariffs, describing the plan as “insensitive” and a further burden on consumers already grappling with economic hardship.
The decision to reject the hike came after an emergency meeting held on Tuesday, where the association issued a communique outlining their objections.
The backlash follows signs that the Nigerian Communications Commission may approve the tariff increase requested by telecom operators.
A source within the NCC had on December 29 dismissed claims of a rumoured proposed telecommunications tariff hike allegedly set to take effect in January 2025.
However, on Tuesday, the telcos argued that the current pricing structure no longer reflects Nigeria’s macroeconomic realities, citing rising inflation, currency depreciation, and the dollarization of equipment costs.
They also pointed to the absence of tariff increases over the past decade and the growing financial burden from multiple levies imposed by various levels of government.
In the communique, signed by National President Chief Adeolu Ogunbanjo and National Secretary Barrister Bayo Omotubora, NATCOMS criticised the NCC for considering the tariff increase.
“The NCC, as recently published in both the print and electronic media, approved the telecommunication service operators to hike their tariffs and the approved increment would see the current tariffs rise by about 40 per cent.
“This association considers the decision of the NCC as very insensitive and not in the interest of Telecoms Services Consumers. The unrelenting rise in prices of Goods and Services in the Country has made life extremely difficult for the generality of Citizens who are Consumers of Telecom Services. The new increment is therefore one additional burden too many,” part of the communique stated.
Under the proposal, the cost of voice calls would rise from N11.00 to N15.40 per minute, text messages would increase from N4.00 to N5.60, and the price for one gigabyte of data would climb from N1,000 to N1,400.
NATCOMS argued that these increases would exacerbate financial strain and reduce access to vital communication services for many Nigerians.
The association also raised concerns about the cumulative impact of taxes on telecom services. NATCOMS highlighted the excise duty introduced by the 2020 Finance Act, which was suspended following public outcry and is currently the subject of a legal challenge.
“The additional tax burden has already brought untold hardship to our members, many of whom have had to cut back on their telecommunication needs,” NATCOMS noted. “The proposed tariff hike would only worsen the situation.”
The legal challenge, filed against telecom operators and federal agencies, questions the legality of the excise duty on grounds of double taxation. The case will be heard in the Federal High Court in Lagos on March 13, 2025.
While acknowledging the telecom operators’ concerns about rising operational costs, NATCOMS proposed alternative means of raising funds.
“Operators should consider listing their companies on the Nigerian Stock Exchange and offering public ownership,” the statement suggested. “This approach would generate the needed funds while aligning with public interest.”
The association called on the NCC to withdraw the approval for the tariff hike and urged telecom operators to explore consumer-friendly solutions to address their financial challenges.
“With these proposed increases, two-thirds of telecom services subscribers risk being priced out of the market,” NATCOMS concluded.
“This is a clear violation of the Nigerian Communications Commission’s duty to protect the interests of consumers.”
NATCOMS reiterated its commitment to advocating for policies that promote affordability and accessibility in the telecom sector.