Nigerians are gearing up to challenge the federal government in court over its approval of a 50% hike in telecommunications tariffs.
This increase, which affects calls, data, and other telecom services, has already triggered plans by Point of Sale (POS) operators to raise their service charges.
The President of the National Association of Telecoms Subscribers (NATCOMS), Adeolu Ogunbanjo, and the National Spokesperson for the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), Ogungbayi Ganiyu, revealed this in separate interviews with NIGPOST on Monday.
NCC Approves Telecom Tariff Increase
The Nigerian Communications Commission (NCC) recently gave telecom operators the green light to increase tariffs by 50%.
This comes after the Minister of Communications and Digital Economy, Bosun Tijani, hinted that telecom costs would rise by either 30% or 50%, following operators’ initial proposal for a 100% increase.
With the approval, Nigerians are expected to pay ₦16.50 per minute for calls (up from ₦11), ₦6 per SMS (up from ₦4), and ₦431.25 for 1GB of data.
Telecom operators could potentially generate ₦6.7 trillion annually from calls alone, as national telephone traffic in 2023 recorded 205.3 billion minutes of outgoing calls.
Subscribers Reject the Hike
Ogunbanjo firmly rejected the 50% hike, stressing that subscribers had agreed to a maximum of 10%.
He argued that the increase would worsen the financial struggles of Nigerians already burdened by high fuel prices, transportation costs, and food inflation, which rose to 38.9% in December 2024.
“This hike is unacceptable. While we acknowledge the challenges facing the telecom sector, this decision will only impoverish Nigerians further. We have no choice but to take legal action,” Ogunbanjo said.
He also urged the government and telecom operators to explore alternative funding sources, such as raising capital from the stock market, instead of placing the burden on subscribers.
POS Operators Consider Raising Fees
POS operators have also raised concerns about the hike’s impact on their businesses. Ogungbayi Ganiyu of AMMBAN noted that POS services rely heavily on telecom infrastructure, and the increased costs may force operators to adjust their service charges.
However, he assured that POS operators would carefully review the situation before making any decisions. “Our members may choose to absorb the costs, but this hike will undeniably affect our operations,” he said.
Economic Consequences Loom
The 50% tariff hike, scheduled to take effect in February 2025, has been criticized as another government policy that could deepen poverty in Nigeria.
Ogunbanjo emphasized that the decision would have a ripple effect on businesses, from large corporations to small-scale enterprises like POS operators.
“This policy will increase costs across the board, leaving Nigerians to bear the brunt of the hike. It’s an economic blow that will further strain the lives of everyday citizens,” Ogunbanjo added.
NIGPOST reports that telecom operators have long pushed for a tariff increase, even threatening to halt operations if their demands were not met.
With the NCC’s approval, the new pricing structure is set to be implemented next month.
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