Telecom group to sue FG over 50% tariff hike approval

The National Association of Telecommunications Subscribers (NATCOMS) announced plans on Monday to challenge the federal government’s approval of a 50% tariff increase for telecom operators.

NATCOMS President, Deolu Ogunbanjo, speaking in Lagos, criticized the Nigerian Communications Commission (NCC) for failing to engage subscribers during the decision-making process.

According to Ogunbanjo, while NATCOMS recognizes the financial challenges faced by the telecom industry, the association had recommended a modest 5% to 10% increase as a compromise.

He described the 50% cap approved by the government as excessive and unacceptable.

“Earlier evaluations by economic experts revealed that the telecom sector is in a precarious state.

“Operators could consider Initial Public Offerings (IPOs) to raise capital from Nigerians rather than impose such a steep hike on subscribers,” Ogunbanjo said.

“For us, a 50% tariff hike is unreasonable given the current economic hardships, and we are prepared to take legal action.”

The NCC, in a statement issued on Monday, defended its decision, citing increased operational costs as the justification for the tariff adjustment.

It explained that the 50% cap was a compromise, as some telecom operators had initially demanded a 100% increase.

The regulatory body stated that the adjustment aligns with Section 108 of the Nigerian Communications Act, 2003, which empowers it to regulate and approve tariffs.

The NCC emphasized that its decision followed extensive consultations with stakeholders and was aimed at balancing the interests of consumers and the industry’s sustainability.

“The NCC prioritizes protecting consumers while ensuring the industry remains viable, supporting thousands of local vendors and suppliers within the telecom ecosystem,” the statement read.

It also noted that the adjustments would enable continued investment in infrastructure and innovation, resulting in better services, improved coverage, and enhanced customer experience.

The NCC urged telecom operators to implement the changes transparently and fairly, acknowledging the financial strain on Nigerian households and businesses.

It reassured the public that the decision was made with the aim of delivering long-term benefits to consumers.