Telecom Group to Challenge FG’s 50% Tariff Hike Approval in Court

By: Bayero Ade

The National Association of Telecommunications Subscribers (NATCOMS) has announced its intention to take legal action against the federal government’s recent approval of a 50% tariff increase for telecom operators.

According to Afripost, speaking in Lagos on Monday, NATCOMS President Deolu Ogunbanjo criticized the Nigerian Communications Commission (NCC) for not involving subscribers in the decision-making process. While acknowledging the financial difficulties faced by the telecom sector, Ogunbanjo revealed that the association had proposed a more modest increase of 5% to 10% as a compromise. He described the 50% hike as excessive and unacceptable.

“Economic assessments have shown that the telecom industry is struggling,” Ogunbanjo said. “Rather than imposing such a steep increase, operators could explore other options, such as Initial Public Offerings (IPOs), to raise capital from Nigerians.”

He emphasized that the 50% increase was unreasonable given the ongoing economic challenges and reiterated the association’s readiness to take legal action if necessary.

In response, the NCC defended its decision, explaining that the tariff adjustment was necessary due to rising operational costs. It further clarified that the 50% cap was a compromise, as some telecom operators had initially requested a 100% increase.

The regulatory body noted that the tariff adjustment was in line with Section 108 of the Nigerian Communications Act, 2003, which grants it the authority to regulate and approve tariffs. It assured that the decision followed consultations with relevant stakeholders and aimed to strike a balance between consumer protection and the industry’s long-term sustainability.

“The NCC’s primary focus is to safeguard consumers while ensuring the sector remains viable, providing jobs and supporting local vendors,” the statement read. It also highlighted that the tariff adjustments would enable further investment in telecom infrastructure and innovation, ultimately leading to improved services, better coverage, and enhanced customer experiences.

The NCC urged telecom operators to implement the tariff changes transparently and fairly, acknowledging the financial strain on Nigerians while ensuring that the decision would yield long-term benefits for consumers.