The National Association of Telecom Subscribers, NATCOMS, has rejected the alleged Telecom tariff hike and called on the Nigerian Communications Commission, NCC, to nullify its approval.

Rising from an emergency meeting on the planned tariff hike of Telecommunication Services, the association’s executive committee in a communiqué issued by its National President, Adeolu Ogunbanjo and the National Secretary, Bayo Omotubora advised operators to embrace other options of generating funds and keeping afloat.

They argued that an increment would make telecommunication services more expensive by 40 per cent and attract 12.5 per cent tax rate, pricing two thirds of Telecom Services Subscribers out of its market.

“Under the new tariff’s regime, a voice call will rise from N11.00 to N15.40 per minute while short message services will 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 is a complete negation of the statutory duty of NCC to protect the interest of Telecom Services Consumers.

“We are aware of the arguments of the Telecom Operators that there has not been any tariff increment in a decade, multiple levies slammed on them by different tiers of Government and the dollarization costs of their equipment.

“But truth be told, there are many other avenues through which the operators can generate funds to meet their rising operational costs without putting unbearable burden on their consumers”, they noted.

NATCOMS asked the operators to approach the Nigerian Stock Exchange Market as one avenue to raise funds to meet their operational requirements.

“This Association considers the decision of the NCC as very insensitive and not in the interest of Telecom 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 the consumers of telecom services.

“The new increment is therefore one additional burden too many”, the communique read.

READ ALSO: NCC debunks telecom tariff hike rumors

NATCOMS noted that telecom services were taxable services under the Value Added Tax Act amended in 2019, by the Finance Act, to raise the tax rate from 5 per cent to 7.5 Per cent.

“That increment brought about untold hardship to our members, many of whom have been forced to cut back on their telecommunication requirements”, said the association even as it urged the NCC to reconsider its decision in the interest of the generality of citizens.

Where is NCC

At press time, there was no official response from the NCC to the clamour by telecommunications companies to hike tariffs. But the commission has described the reports, which stated that the tariff hike would take effect in January 2025, as false and without grounds even as it promised to provide an official statement at the appropriate time to clarify all speculations about Telecom tariff hike.

A senior official hinted that the regulatory body operates under a transparent framework stipulated by the Nigerian Communications Act. The official then urged subscribers to disregard the misinformation.

The official added that the framework operates with strict compliance and there are procedures before any tariff adjustments are approved, which are also guided by various consultations.

“These rumours are baseless and misleading. The NCC is committed to protecting consumers and ensuring that any potential tariff changes are communicated clearly and transparently. Subscribers can rest assured that no tariff increase has been approved,” the official stated.

While reiterating its commitment to abiding with due process, NCC asked journalists and various stakeholders in the telecom industry to verify information before publication. It added that accurate information and verified reportage prevents public panic and the spread of rumours.

The Commission assured that it remains committed to ensuring stability within the telecommunications industry. It emphasized that updates on traffic and other related issues would be communicated through official platforms.

The Association of Telephone, Cable TV, and Internet Subscribers of Nigeria, ATCIS, also addressed the rumours. The association’s National President, Mr. Sina Bilesanmi, said that clarification was sought directly from the NCC on December 24, 2024, concerning the tariff hike rumour.

“The NCC confirmed there is no truth to claims of call charges increasing to N15.40 per minute from N11, SMS charges rising to N5.60, or 1GB of data costing N1,400 instead of N1,000. Any changes in tariffs, if necessary, will follow due process and involve input from all stakeholders, including ATCIS. There is no cause for alarm,” Bilesanmi said.

Moreover, the NCC and ATCIS pledged their commitment to protecting customers’ rights and advised subscribers to rely on verified information from trusted and credible channels.

Last week, there are indications that the Federal government may give a nod to the persistent calls of telecommunication companies for tariff review.

Case for tariff hike

For a while, telecom giants such as MTN, Glo, Airtel, and 9mobile have persistently called for an increase in tariff rates. They claimed that the rates which were last reviewed 11 years ago need adjustment considering the inflated economy.

MTN, alongside mobile network operators, is seeking approval for a 10% tariff increase. Telecom companies believe that this will help them meet current economic realities.

According to them, this will cover operational costs and the effect of the rising foreign exchange regime and inflation. They also argue that without the adjustment, their financial viability and service standards will continue to deteriorate. They added that the rising costs of diesel prices used in powering base transceiver stations are eating up their revenues.

In a move to push for a tariff hike, MTN Nigeria CEO, Karl Toriola, expressed in October that the company might shut down without a tariff hike. According to Toriola, the telecommunications sector has incurred huge losses that require significant intervention. He added that MTN, the largest telecommunications company in the country with about 78 million subscribers, is not left out.

“There should be no delusion; if the tariff doesn’t go up, we will shut down,” he said.

He emphasized the significance of operators in the country and their contributions to the Nigerian economy. He also urged the government and telecommunications regulators to take swift action to prevent the sector from an uncontrollable financial crisis.

Also, the Chief Executive Officer of 9mobile, Obafemi Banigbe, raised the push for a tariff hike for telecom services. According to him, the telecom industry has been badly hit by the current naira devaluation, forcing major telecom operators to declare significant losses.

“What they charge us has increased tremendously. We need to act fast to keep the sector going. The industry must get free market opportunities to increase tariffs on services,” the 9mobile CEO said.

Likewise in a similar case, internet connectivity provider Starlink announced a 100 per cent increase in the cost of its monthly subscription packages for users in Nigeria on Friday. The Standard (Residential) package, which previously cost N38,000, will now cost users N75,0000.

Though NCC is yet to respond to the development, the announcement follows an attempt to increase the subscription and router purchase prices in October by the same rate

Earlier hint on tariff hike

The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, recently gave a hint on a possible tariff hike for mobile operators. However, he challenged operators to increase the quality of their services.

During a television programme last week, the minister hinted that all the telecommunications industry needs to operate financially is under process.

“We have conducted a study on the Sustainability of the telecom sector. The result should be out in about two weeks. This will reveal what we need to do to ensure we can support operators more for improved services,” he said.

He explained the possibility of a tariff hike and added the significance of ensuring valuable output from mobile operators.

“Beyond just the conversation, which is out there, which is about increasing the tariff, Yes, we think there may be a need for the hike, but lots more need to be done as a country to ensure that the sector is competitive and beyond just supporting them to be competitive, the government must support be investing in digital infrastructure as well,” Bosun Tijani added.

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