Telecom subscribers in Nigeria are preparing to take legal action against telecom operators due to a proposed tariff increase that could lead to a significant rise in service charges across the country. The National Association of Telecommunications Subscribers (NATCOMS) has strongly opposed the proposed tariff hike, which would see charges for services such as voice calls, SMS, and internet bundles potentially increase by up to 100%.
Details of the Proposed Tariff Increase
The proposed changes would lead to:
- Voice calls: N11.00 to N22.00 per minute
- SMS: N4.00 to N8.00 per message
- 1GB internet bundle: N1,000 to N2,000
These adjustments have been met with fierce resistance from subscribers, who argue that the price hikes are unsustainable and unfair, particularly for low-income users.
NATCOMS’ Stance on the Hike
Adeolu Ogunbanjo, president of NATCOMS, expressed strong opposition to the telecom operators’ proposal, stating that the group would initiate a class-action lawsuit if the tariff increase goes through without exploring alternative revenue sources. Ogunbanjo argued that the proposed price hikes are unreasonable and that telecom companies should explore other avenues, such as raising funds through the Nigerian Stock Exchange, instead of burdening subscribers with higher charges.
He said:
“Initially, we were looking at a marginal increase of 5% to 10%. Then the NCC considered a 40% increase. Now, telcos are proposing 100%, and we are saying no.”
Ogunbanjo also emphasized the importance of exploring capital markets for funding, suggesting that telecom companies could raise funds by issuing shares, as MTN had successfully done in the past. He stated that other operators like Glo and Airtel should follow suit.
Telecom Operators’ Defense
Despite the backlash, telecom operators defend the proposed tariff increase, citing rising operational costs and inflation as key factors driving the need for a price adjustment. Karl Toriola, CEO of MTN Nigeria, acknowledged the telecom industry’s financial strain but remained uncertain about the approval of the tariff hike, stating that the Nigerian Communications Commission (NCC) would ultimately make a fair decision that balances the interests of both subscribers and the industry.
Toriola noted:
“We are unsure if our proposals will be approved, but we are confident that the NCC will reach a fair conclusion that considers the realities of both subscribers and the industry.”
Impact on Low-Income Subscribers
NATCOMS has expressed concern that the proposed price hikes will disproportionately affect low-income subscribers, making it harder for them to access essential communication services. The group has warned that if the tariff increase is approved, it could lead to widespread hardship, particularly for the most vulnerable members of society.
NCC’s Role and Future Steps
The Nigerian Communications Commission (NCC) is currently reviewing the proposed tariff hike, but no final decision has been made yet. NATCOMS has urged the NCC to reject the proposal, stressing that any approval could lead to a legal challenge to protect the rights of telecom subscribers.
The proposed tariff increase has sparked significant debate, with telecom operators citing financial pressures while consumer groups like NATCOMS argue for alternative funding solutions. As the NCC continues to review the proposal, the outcome will have a major impact on both the telecom industry and Nigerian consumers, particularly low-income subscribers who may bear the brunt of the price hikes.
