The National Association of Telecommunications Subscribers has announced its intention to challenge the Federal Government’s approval of a 50% tariff increase for telecom operators in court.
NATCOMS argues that the decision was made without proper consultation with key stakeholders, including subscribers.
This was disclosed by the
President of NATCOMS, Mr. in an interview with NAN.
He referred to the decision as burdensome, particularly for small businesses and individual subscribers.
“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,” Ogunbanjo stated.
He acknowledged the financial challenges facing the telecommunications sector but stressed that a modest increase of 5% to 10% would have been more reasonable.
“We painfully agreed that, look, a moderate or marginal five per cent to 10% increase will be fine. 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,” he added.
Ogunbanjo proposed that telecom operators explore alternative funding avenues, like Initial Public Offerings (IPOs), to raise capital instead of imposing a 50% tariff increase on subscribers.
“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% is granted for tariff hike is not cheap and it is a no! no! from us subscribers,” he noted.
Ogunbanjo confirmed that NATCOMS would challenge the decision in court, highlighting the financial strain the hike would place on subscribers who are already facing economic difficulties.
The Nigerian Communications Commission in a statement signed by its Director of Public Affairs, Dr. Reuben Muoka, defended the 50% tariff increase as a necessary step to tackle the rising operational costs in the industry.
“The NCC has prioritised striking a balance between protecting telecoms consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem,” the statement read.
The commission noted that although some operators had requested a 100% tariff increase, it approved a maximum adjustment of 50% following extensive consultations with stakeholders.
