Subscribers enter negotiations with NCC over telecom tariff hike, as NLC and NANS give ultimatum

The National Association of Telecommunication Subscribers (NATCOMS) have said it will engage with the Nigerian Communications Commission (NCC) today over the recently approved tariff increase, and seek a rescindment of the decision.

The subscriber body cautioned the NLC from taking collective actions, noting that doing so would send a wrong signal to investors in Nigeria and make the country unattractive to them.

Adeolu Ogunbanjo, the NATCOMS president, noted that the civil option would be to take the case to court instead of instigating a boycott or protest.

He noted that the telecommunications sector represents a model of what successful deregulation of an industry represents, and the private players are there to make a profit. It was only regrettable that the NCC did not consult with consumers before the approval.

Ogunbanjo, however, suggested that rather than pass on the increased costs to subscribers, the companies should explore alternatives to raise capital to inject into the business.

This, he said, will be at the core of the NATCOMS engagements with NCC and the Telcos, the PUNCH reports.

The National Association of Nigerian Students has equally complained about the hike. In a statement, Oladimeji Uthman, the Clerk of the Senate at NANS National Headquarters, said that this move will compound hardships for Nigerian students.

The student body called for a reversal of the decision, threatening that they would embark on nationwide protests if nothing is done. They described the move as inconsiderate, as students need affordable internet to access information globally and bridge the gaps in Nigeria’s education system.

This reaction suggests that the body may be joining the Nigerian Labour Congress (NLC) to embark on collective action.

Nigerian telecom operators have been agitating for a raise in telecom tariffs since 2024. They claim that the hike is due to the volatile foreign exchange market, rising energy costs, and inflation, which have resulted in significant losses in recent years. They also noted that they were running at a loss and needed to increase tariffs to stay afloat.

While denying their request for a 100% tariff increase, the Federal government proposed a rate increase of 30 to 60%.

Recently, the NCC eventually permitted telecom operators to raise their tariffs by 50%. This represents the first hike in over 11 years, and the operators insist that Nigeria’s economic realities justify it.

Responding to the approval, Karl Toriola, CEO of MTN Nigeria, said the adjustment would address rising operational costs and ensure critical investments in infrastructure in the telecom industry.

The Federal Competition and Consumer Protection Commission (FCCPC) also sent a message to TelCos that the new tariff regime must feature improved services as there would be zero tolerance for network blackout of congestion.

In an earlier development, TimesNow.com.ng reported that the subscribers under the umbrella of the National Association of Telecoms Subscribers would be suing the Nigerian Communications Commission (NCC).

This decision came after the NCC approved telecommunications companies’ (telcos’) proposal to increase prices on January 20.

The president of NATCOMS stated that the federal government’s approved tariff rise of 50% was unacceptable, especially without due consultation with subscribers.

Source: TimesNow.com.ng

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