The National Association of Telecoms Subscribers (NATCOMS) plans to sue the Nigerian Communications Commission (NCC) over its approval of a 50% telecom tariff hike. NATCOMS argues the increase is excessive and calls for a moderate 5%-10% rise instead. Subscribers cite economic hardships and demand alternative funding solutions for telecom operators.
Telecom subscribers in Nigeria, under the National Association of Telecoms Subscribers (NATCOMS), have vowed to challenge the Nigerian Communications Commission (NCC) in court over the recently approved 50% hike in call tariffs. The NCC had granted telecommunications operators’ request to raise tariffs, citing economic pressures in the sector.
While telecom operators, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), initially sought a 100% increase, the NCC approved a lower 50% adjustment. MTN Nigeria CEO Karl Toriola emphasized the necessity of the hike to sustain the industry.
Deolu Ogunbanjo, NATCOMS president, criticized the NCC for failing to engage subscribers during the decision-making process. While acknowledging the financial strain faced by the telecom industry, he argued that a 50% increase is excessive and detrimental, particularly to small businesses like Point of Sale (POS) operators. Ogunbanjo suggested a more moderate 5% to 10% rise, which he believes would balance the sector’s needs without overburdening consumers.
Ogunbanjo also proposed alternative solutions for raising funds, such as telecom operators offering shares to Nigerians through Initial Public Offerings (IPOs). He emphasized that telecom services are critical to various sectors, including banking and education, and a steep increase would disrupt the economy.
NATCOMS is prepared to take legal action, asserting that the tariff hike is unjust and will worsen economic hardship for Nigerians. The case could set a significant precedent for consumer advocacy in the telecom sector.
