Nigerians have expressed their determination to take legal action against the federal government over the approval of a 50 percent increase in telecommunication tariffs, including calls and data services.
This adjustment has already triggered a ripple effect, as Point of Sales, POS, operators are considering raising their service charges in response.
Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers, and Ogungbayi Ganiyu, National Spokesperson for the Association of Mobile Money & Bank Agents in Nigeria, disclosed these on Monday.
READ ALSO: NCC approves 50% telecom tariff hike
- The development follows the Nigerian Communications Commission’s, NCC, announcement on Monday granting Mobile Network Operators permission to raise service tariffs by up to 50 percent.
The Minister of Communications and Digital Economy, Bosun Tijani, hinted at a possible telecom tariff increase of 30 or 50 percent. This followed a meeting with operators who had initially proposed a 100 percent hike.
This marks the first major tariff hike in 13 years since the NCC introduced a pricing template in 2013.
Under the new tariff structure, Nigerians may pay N16.5 per minute for calls, up from N11. SMS costs could rise to N6 from N4, while 1GB of data may now cost N431.25. With this adjustment, telecom companies are projected to generate N6.7 trillion annually from call revenue alone, based on the 2023 national telephone traffic data, which recorded 205.3 billion minutes of outgoing traffic and 203.2 billion minutes of incoming traffic.
Reacting to the development, Ogunbanjo stated that telecom subscribers are firmly opposed to the 50 percent tariff increase.
He explained that subscribers had previously consented to a 5 to 10 percent hike, but the 50 percent approval by the NCC was unacceptable. According to him, subscribers have resolved to sue the federal government over the decision.
Ogunbanjo criticized the increase, describing it as an additional burden on Nigerians already struggling with rising costs of fuel, transportation and food, which saw a 38.90 percent inflation rate in December 2024.
“It is unfortunate that it is the Minister of Communications and Digital Economy, Bosun Tijani, who is leading the push for increased telecommunications charges,” he said.
“He should not impoverish Nigerians.
“While I understand the challenges facing the telecom sector, we agreed to a 5 to 10 percent tariff hike. If that is not enough, the telcos should go to the capital market to raise funds.
“We are going to court to challenge the decision by the federal government to approve a 50 percent tariff hike because we have given them options.
“We’ve painfully agreed to a telecom tariff hike. We know we are going to pay more, but not 50 percent.
“The telcos requested a 100 percent tariff hike; of course, they want to make more profit at the expense of subscribers.
“50 percent tariff hike is too much. We are saying no. It is not acceptable. Anything more than 10 percent, we are going to court.
“This tariff will be enormous. Every business will increase their rates—from companies to ordinary POS operators.
“This will cause further impoverishment of Nigerians,” Ogunbanjo said.
POS operators mull fee hike
The Association of Mobile Money & Bank Agents in Nigeria indicated that its members might have no choice but to raise their fees to cope with the 50 percent hike.
Ogungbayi Ganiyu, National Public Relations Officer at AMMBAN highlighted that POS operators rely heavily on telecommunication services, particularly data and would be significantly affected by the increased tariffs.
“The telecom tariff hike will impact the operations of our members. I am afraid this may also have a multiplier effect on service charges,” he noted.
“We have not sat down and looked at the latest tariff hike.
“However, the telecom service hike may not affect our operations.
“Our members may decide to bear the burden of the hike.
“Just like bankers, POS operators should be treated with respect in the banking sector because we are assisting them to reach the hinterlands,” Ganiyu added.
Worsening poverty in Nigeria
The tariff increase, scheduled to take effect in February 2025, has been described as another policy under President Bola Ahmed Tinubu’s administration that could worsen poverty levels in Nigeria.
Ogunbanjo emphasized that the hike would negatively affect both small and large businesses across the country.
“This tariff will be enormous. Every business will increase their rates—from companies to ordinary POS operators.
“This will cause further impoverishment of Nigerians,” he reiterated.
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