As the Nigerian Communications Commission (NCC) and Mobile Network Operators (MNOs) are making final moves to adjust telecom services tariffs in the country after prolonged deliberations with relevant ministry and other agencies, the National Association of Telecommunications Subscribers (NATCOMS) has threatened to challenge the proposed 50% tariff hike by telecoms operators in a law court.
The President of NATCOMS, Deolu Ogunbanjo, was quoted by the News Agency of Nigeria (NAN) as expressing the subscribers’ next line of action on the plan, accusing the NCC of not carrying the telecom services subscribers along in the arrangement.
The association’s leader, who claimed that NATCOMS understood the challenges being faced by the MNOs in their operations given the escalating inflation rate and incidents of vandalism in the industry, maintained that a maximum of 10% tariff hike would have been ideal under the current adjustments plans.
Describing the approved 50% tariff hike by the Federal Government as unacceptable to telecom subscribers in the country, Ogunbanjo said doing so would hurt not just the subscribers but also the nation’s economy if implemented;
He clarified: “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.
“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.
“So, we appreciate that. It’s painful, but we granted. We said, okay, we will not mind if it is just five per cent to 10 per cent increase”, the NATCOMS chief added.
Ogunbanjo stressed that if the operators really needed funds, they should explore the Nigerian capital market to raise investment funds through various options availed by the Exchange for such purposes.
He elaborated: “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.
“However, a situation where a whole 50 per cent is granted for 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”, Ogunbanjo added.
The NATCOMS’ position on the planned tariff hike came just a few hours after the NCC confirmed its approval for the MNOs on 50% hike of their voice and data tariffs based on the prevailing micro and macroeconomic indices in the country.
The telecoms industry regulatory commission maintained that its approval of the tariff hike by the MONs was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003.
The NCC, in a statement issued by its Director, Public Affairs, Reuben Muoka, maintained that the adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% upward review requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.
According to the commission, the adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and that the MNO’ requests will be reviewed on a case-by-case basis as it is its standard practice for tariff reviews.
In addition, the Director disclosed that the adjustments would be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.
The commission recalled that tariff rates had remained static since 2013, despite the increasing costs of operations faced by telecom operators, hence the approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.
