The National Association of Telecoms Subscribers (NATCOMS) has announced plans to sue the Nigerian Communications Commission (NCC) over the approval of 50 percent tariff hike.
NCC on Monday, January 20, approved the request of telecommunications companies (telcos) to increase tariffs. The adjustment came after the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) raised several concerns and asked the NCC to review call tariffs upwards.
Reacting to the development, the president of NATCOMS, Deolu Ogunbanjo said NCC did not carry subscribers along in the upward price adjustment. Ogunbanjo that NATCOMS understands the dilemma faced by the telecoms industry and suggested a 5 per cent to 10 per cent marginal increase in tariff.
Ogunbanjo stated that the federal government’s approved 50 per cent tariff hike is unacceptable.
“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators,” Ogunbanjo said. “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 percent 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 (GDP).
So, we appreciate that. It’s painful, but we agreed. We said, okay, we will not mind if it is just a five percent to 10 percent increase.”he said.
Ogunbanjo said if the operators need funds, they should explore the Nigerian exchange for options for financing.
“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 percent 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”he said.
The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani said on January 16 that a hike in telecom tariffs would not exceed 60 percent.
Tijani had said a 100 per cent increase would hurt Nigerians and hamper the country’s economic growth. The chief executive officer (CEO) of MTN Nigeria, Karl Toriola maintained that telcos wanted a 100 percent increase in tariffs.
But in approving the operators’ request, the NCC capped the tariff increase at 50 percent lower than the telco’s demand by half.
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