The recent 50% hike in telecom tariffs has ignited a heated debate in Nigeria, with subscribers issuing an ultimatum to the Nigerian Communications Commission (NCC) to reverse the increase. Subscriber advocacy groups have called for a reduction to 10% by Wednesday, January 29, 2025, warning of legal action if their demands are not met.
The tariff adjustment, implemented on January 20, marked the first increase since 2013. It raised the minimum cost of phone calls from ₦6.40 to ₦9.60 per minute, aiming to bridge the gap between escalating operational costs and stagnant revenues in the telecom sector. Despite the NCC’s move to approve a moderate increase—less than the 100% hike initially sought by operators—consumer backlash has been swift.
Subscriber Groups Push Back
The National Association of Telecoms Subscribers (NATCOMS) and the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria are spearheading efforts to challenge the increase. While acknowledging the financial pressures faced by telecom operators, the groups argue that a 50% hike places an undue burden on Nigerians grappling with rising living costs.
NATCOMS President, Adeolu Ogunbanjo, revealed ongoing engagements with the NCC. “We have appealed to the NCC to bring the tariff down to a manageable 10%. If we do not receive a favorable response by Wednesday, we will release a communique and potentially take legal action,” Ogunbanjo said.
He emphasized the need for a balanced approach, urging stakeholders to avoid protests or aggressive tactics. “The telecom operators are private businesses, not government entities. We must address this matter civilly to ensure sustainable solutions for both consumers and operators.”
NLC Protest Draws Criticism
The Nigerian Labour Congress (NLC) has announced plans for a protest over the tariff hike, but its involvement has drawn criticism from subscriber groups. Advocacy leaders argue that telecom issues fall outside the NLC’s core mandate of protecting workers’ welfare.
Sina Bilesanmi, National President of the Association of Telephone, Cable TV, and Internet Subscribers, questioned the NLC’s authority on the matter. “The NLC Act does not empower them to interfere in telecom issues. Their focus should remain on labour-related concerns,” Bilesanmi said.
He added that consumer advocacy groups are already addressing subscriber interests. “Our role is to ensure subscribers’ rights are protected while safeguarding the sustainability of the telecom industry. The 50% tariff hike, though painful, was necessary to prevent the sector’s collapse.”
Balancing Consumer and Industry Needs
Telecom operators face rising operational costs driven by inflation, currency fluctuations, and the heavy investments required to meet growing consumer demand. For years, call and messaging tariffs remained static despite these challenges, placing immense financial strain on the industry.
While subscribers struggle with the increased costs, industry experts warn that failing to address operators’ financial pressures could jeopardize Nigeria’s telecom sector and its pivotal role in the digital economy.
What’s Next?
As the January 29 ultimatum looms, the NCC faces mounting pressure to find a middle ground. With subscriber groups pushing for significant reductions and the NLC threatening protests, the issue underscores the broader tension between economic realities and consumer protection.
The coming days will determine whether civil dialogue can resolve the impasse or if the dispute escalates into legal battles and public demonstrations. One thing remains clear: the future of Nigeria’s telecom industry hangs in the balance.