By Adedapo Adesanya

The National Association of Telecommunications Subscribers (NATCOMS) wants a maximum of 10 per cent increase in tariffs as against the 50 per cent announced by the Nigerian Communications Commission (NCC).

Recall that the leadership of the body in an interview on Tuesday said it would challenge the federal government’s decision to allow operators increase tariff by 50 per cent in a court of law.

In another round of interview with the News Agency of Nigeria (NAN) in Lagos, the President of NATCOMS, Mr Deolu Ogunbanjo, said the group understood the dilemma faced by the telecommunications industry and had suggested a 5 – 10 per cent marginal increase in tariff.

He said that the approval by the federal government for the telcos to raise tariffs at a maximum of 50 per cent was unacceptable, arguing that it will “affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators.”

“It will increase operational costs,” he added.

According to Mr Ogunbanjo, experts had x-rayed the telecoms sector and said it was in intensive care, meaning it needed to be attended to.

“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,’’ he said.

The NATCOMS boss stressed that, if the operators really needed funds, they should explore the Nigerian Exchange (NGX) Limited.

“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.”

He reiterated that the body will take the case to the court.

“I mean, for what we are already going through, no for us, we will challenge this in court,’’ Mr Ogunbanjo insisted.

The NCC announcing the hike on Monday said the increase was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

“…Over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,” the announcement statement noted.

By Adedapo Adesanya

An association representing the interest of telecommunication subscribers in Nigeria has rejected the 50 per cent tariff increase announced by the Nigerian Communications Commission (NCC) and has threatened legal action.

On Monday, the NCC approved a 50 per cent tariff increase for telecom operators in the country, the first since 2013.

The 50 per cent call was lower than the 100 per cent recommended by the other stakeholders, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), which has members like MTN and Airtel.

Now in response, the National Association of Telecoms Subscribers (NATCOMS) has faulted the move, saying the 50 per cent was too high and called for another review.

The association’s president, Mr Deolu Ogunbanjo, said on Channels Television’s Lunchtime Politics, monitored by Business Post on Tuesday, that the body would approach the courts if there’s no reversal.

He noted that Nigerians are already bearing the brunt of a cost of living crisis, adding that the 50 per cent hike which was supposed to reprieve from the initial 100 per cent recommendation, was still not acceptable.

“It is not it at all. It is so much for subscribers to bear. Already, we are grappling with a lot of things that are surrounding the business climate here… fuel cost, electricity cost, and all that… you are now looking at telcos asking for 100 per cent and NCC now is granting them 50 per cent It is a no-no,” he said.

“We are definitely not going to accept this,” he declared.

The NCC, announcing the hike on Monday, said the increase was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

“…Over 100 per cent requested by some network operators was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,” the announcement statement noted.

By Adedapo Adesanya

The Nigerian Communications Commission (NCC) on Monday approved a 50 per cent tariff increase on calls, SMS, and internet data for telecoms companies in the company.

This comes after telcos suggested a 100 per cent hike in the tariffs, the first of such changes in over 10 years.

Despite the recommendation, the NCC was concerned about the impact this would have on Nigerians, who are battling a cost of living crisis.

The NCC rationalised the 50 per cent hike, saying it wanted to strike a balance between protecting consumers and ensuring the industry’s sustainability.

“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” a statement from the NCC read on Monday night.

Recall that the Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, has said the federal government may consider between 30 and 60 per cent hike in tariffs.

“I think it should not be more than anywhere between 30 and 60 per cent,” he said during an interview recently.

On his part, the Chief Executive Officer of MTN Nigeria, Mr Karl Toriola, said telcos are proposing a 100 per cent increase in tariffs to the Nigerian government.

He, however, pointed out that it won’t get such approval but said a substantial change, beneficial to all stakeholders, could be agreed upon.

It is not certain what the reaction of the telcos may be concerning this new development. If they disagree with the approval, it may lead to another round or dialogue or limitation of service offerings.