Subscribers reject 50% tariff hike, threaten to sue NCC
The National Association of Telecoms Subscribers says it will sue the Nigerian Communications Commission over the 50 per cent tariff hike.
On January 20, the NCC approved the request of telecommunications companies (telcos) to increase tariffs.
The adjustment came after the Association of Licensed Telecommunications Operators of Nigeria and the Association of Telecommunications Companies of Nigeria raised several concerns and asked the NCC to review call tariffs upwards.
The Chief Executive Officer, MTN Nigeria, said telcos wanted a 100 per cent increase in tariffs.
But in approving the operators’ request, the NCC capped the tariff increase at 50 per cent, lower than the telco’s demand by half.
Reacting to the development in an interview with journalists in Lagos on Monday, the President of NATCOMS, Deolu Ogunbanjo, said the NCC did not carry subscribers along in the arrangement.
Ogunbanjo said NATCOMS understood the dilemma faced by the telecoms industry and had suggested a five per cent to 10 per cent marginal increase in tariff.
He said the federal government’s approved 50 per cent tariff hike is unacceptable.
“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators.
“It will increase operational costs”, he said.
Ogunbanjo said economic experts had x-rayed the telecoms sector and said it was in intensive care, meaning that it needed to be attended to.
“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it.
“So, that is why we painfully agreed that look, a moderate or marginal five per cent to 10 per cent increase will be fine.
“You know, we do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s gross domestic product (GDP).
“So, we appreciate that. It’s painful, but we agreed. We said, okay, we will not mind if it is just a five per cent to 10 per cent increase.”
Ogunbanjo added that if the operators need funds, they should explore the Nigerian exchange for options for financing.
“The industry operators can opt for an Initial Public Offer (IPO) for Nigerians to buy shares in their companies as a way of raising funds,” Ogunbanjo added.
“However, a situation where a whole 50 per cent is granted for a tariff hike is not cheap and it is a no! no! from us subscribers.
“I mean, for what we are already going through, no for us, we will challenge this in court.”
On January 16, the minister of communications, innovation, and digital economy, Bosun Tijani, said a hike in telecom tariffs would not exceed 60 per cent.
Tijani had said a 100 per cent increase would hurt Nigerians and hamper the country’s economic growth.
It has been reported that NCC, the industry’s regulatory body on Monday released a statement saying it had acceded to the requests of operators to hike tariffs.
This was contained in a statement, signed by the Director, Public Affairs of the NCC, Dr Reuben Muoka.
The NCC said it had approved a maximal increment of 50 per cent tariff adjustments in response to prevailing operational costs.
It said that this was less than the 100 per cent demanded by some telecoms operators.
