Outrage has greeted the federal government’s approval of a 50% increase in telecommunications tariffs, with Nigerians vowing to seek legal redress against the decision.
This announcement follows Minister of Communications and Digital Economy Bosun Tijani’s recent hint that tariffs on calls, data, and SMS would rise between 30% and 50%. Telecom operators had initially proposed a 100% increase, sparking widespread backlash.
The hike, which marks the first significant adjustment to the price template set by the Nigerian Communications Commission (NCC) in 2013, will see Nigerians paying N16.5 per minute for calls, up from N11, while SMS charges will increase to N6 from N4. Additionally, the cost of 1GB of data will rise to N431.25.
Telecom operators stand to benefit significantly under the new regime, with potential annual revenues from calls alone projected to hit N6.7 trillion.
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This estimate is based on 2023 national telephone traffic data, which recorded 205.3 billion minutes in outgoing traffic and 203.2 billion minutes in incoming traffic.
The National Association of Telecoms Subscribers (NATCOMS) and the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) have both condemned the tariff hike.
Adeolu Ogunbanjo, President of NATCOMS, expressed disappointment, stating that subscribers had reluctantly agreed to a modest 5-10% hike, not the 50% approved by the NCC.
“It is unfortunate that the Minister of Communications and Digital Economy, Bosun Tijani, is leading this charge to increase telecom service costs,” Ogunbanjo said.
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“While we understand the challenges facing the sector, a 50% hike is excessive and will further impoverish Nigerians already grappling with rising costs of fuel, transportation, and food.”
He added that subscribers had offered alternative solutions, including a more gradual increase and encouraging telcos to raise funds through the capital market.
“We are prepared to take the federal government to court to challenge this decision. Anything beyond 10% is unacceptable,” Ogunbanjo emphasized.
Ogungbayi Ganiyu, National Spokesperson for AMMBAN, echoed similar sentiments, warning that the hike would have a domino effect on businesses and consumers alike.
“This tariff hike will drive up costs for every sector, from Point of Sale (POS) operators to small and medium enterprises,” he said.
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The tariff hike comes at a time when inflation remains high, with food prices increasing by 38.90% in December 2024.
Critics argue that the decision is ill-timed and insensitive to the struggles of ordinary Nigerians. POS operators have already hinted at plans to increase service charges, a move likely to exacerbate financial pressures on consumers.
Analysts have also raised concerns about the potential impact on digital inclusion, as higher telecom costs could limit access to essential communication services for low-income Nigerians.
Minister Tijani has defended the move, citing the challenges faced by the telecom sector, including rising operational costs.
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However, his stance has done little to quell public dissatisfaction. Nigerians, who have previously endured sharp increases in fuel prices and other essential services, see this latest hike as another blow to their dwindling purchasing power.
With NATCOMS and AMMBAN leading the charge, the stage is set for a legal showdown. As subscribers prepare to take the federal government to court, the outcome could set a precedent for future policy decisions affecting the telecom sector and consumer rights.
For now, the proposed tariff hike remains a contentious issue, with Nigerians anxiously awaiting its implementation and the legal battle that may determine its fate.