‘A No-No,’ Telecoms Subscribers Association Rejects Tariff Hike

The National Association of Telecoms Subscribers (NATCOMS) has strongly rejected the recent approval of a 50% tariff hike for telecom services in Nigeria, describing the decision as unacceptable. The Nigerian Communications Commission (NCC) approved the increase on Monday, following requests from industry bodies such as the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), who had called for an upward review of tariffs.

NATCOMS, led by its president, Deolu Ogunbanjo, expressed deep dissatisfaction with the decision, arguing that the already high costs of living and doing business in Nigeria—such as rising fuel and electricity prices—make the new tariff increase an additional burden for telecom subscribers. Ogunbanjo criticized the move, stating, “It is not it at all. It is so much for subscribers to bear. Already, we are grappling with a lot of things… you are now looking at telcos asking for 100% and NCC granting them 50%. It is a no-no.”

The telecom operators had initially requested a 100% increase in tariffs, citing the rising operational costs in sectors like aviation and power, as well as the absence of a tariff hike in the telecom industry for the past 11 years. They argued that an increase was essential for the sustainability of their services and for improving the quality of service offered to Nigerians.

Karl Toriola, CEO of MTN Nigeria, supported the tariff increase during an appearance on Channels Television’s Sunrise Daily, where he explained that tariffs had remained unchanged for over a decade. He emphasized that an increase would enable telecom operators to invest in better infrastructure and service delivery, benefiting the subscribers in the long run.

However, NATCOMS disagrees with this argument, with Ogunbanjo suggesting that the proposed increase is far too steep. He recommended a more modest increase, between 5% and 10%, which he believes would be more manageable for consumers while still allowing telecom operators to improve service quality. He also hinted at other avenues that could be explored by telecom operators to raise funds, such as launching initial public offerings (IPOs).

Ogunbanjo expressed his discontent, claiming that during a recent meeting of industry stakeholders, no consensus was reached on a tariff increase. He warned that if the tariff hike is implemented, NATCOMS would take legal action against the telecom operators, signaling that they would not passively accept the decision.

The controversy surrounding the tariff hike has brought into focus the ongoing tension between telecom operators and consumers, with NATCOMS positioning itself as the defender of subscribers’ rights against what they consider a disproportionate price increase. With legal action now on the table, the situation is likely to unfold into a protracted battle between telecom service providers, regulatory bodies, and consumer advocates.