The National Association of Telecoms Subscribers (NATCOMS) has rejected the proposed hike in telecommunication tariffs, calling the plan “insensitive” and an additional burden on Nigerians already facing economic challenges.

Background

Following signs that the Nigerian Communications Commission (NCC) might approve tariff increases requested by telecom operators, NATCOMS held an emergency meeting on Tuesday to discuss the proposal. Telecom operators have argued that current pricing structures no longer reflect Nigeria’s macroeconomic realities, citing factors like rising inflation, currency depreciation, and dollarized equipment costs.

The proposed changes would increase the cost of:

• Voice calls from ₦11.00 to ₦15.40 per minute,
• Text messages from ₦4.00 to ₦5.60,
• One gigabyte of data from ₦1,000 to ₦1,400.

NATCOMS’ Response

In a communique signed by National President Chief Adeolu Ogunbanjo and National Secretary Barrister Bayo Omotubora, NATCOMS criticized the NCC for considering the tariff hike.

“The NCC’s approval of a telecommunication tariff increase is very insensitive and not in the interest of telecom service consumers,” the communique stated. “The unrelenting rise in prices of goods and services has made life extremely difficult for citizens who rely on telecom services. This increase is one burden too many.”

Concerns About Accessibility

NATCOMS argued that the proposed hikes would reduce access to communication services for many Nigerians, particularly lower-income subscribers. They highlighted the cumulative impact of multiple taxes, including the excise duty introduced by the 2020 Finance Act, which has been suspended after public outcry but remains under legal challenge.

“The additional tax burden has already brought untold hardship to our members, forcing many to cut back on their telecommunication needs. The proposed tariff hike will only worsen this situation,” NATCOMS noted.

Proposed Solutions

While acknowledging the financial pressures faced by telecom operators, NATCOMS suggested alternative ways to raise funds without burdening consumers.

“Operators should consider listing their companies on the Nigerian Stock Exchange and offering public ownership. This approach would generate the needed funds while aligning with public interest,” the association proposed.

NATCOMS also urged the NCC to withdraw its approval for the tariff increase and work with operators to find more consumer-friendly solutions.

Legal Challenge and Next Steps

The association highlighted its ongoing legal challenge to the excise duty on telecom services, arguing that it constitutes double taxation. The Federal High Court in Lagos is set to hear the case on March 13, 2025.

NATCOMS emphasized its commitment to ensuring telecom services remain affordable and accessible to all Nigerians, urging the NCC and operators to prioritize consumer interests.

Public Reaction

The proposal has drawn widespread criticism from Nigerians, who view it as another blow in an already challenging economic environment. Many have echoed NATCOMS’ call for affordable and equitable policies in the telecom sector.

As the debate continues, the NCC faces increasing pressure to balance the financial concerns of operators with its duty to protect consumers and ensure accessible communication services for all.