50% Tariff hike: Telecom subscribers to drag NCC to court, push for 10% increase

Following the approval of 50 per cent telecom tariff adjustments by the Nigerian Communications Commission (NCC), the National Association of Telecommunications Subscribers (NATCOMS) has announced plans to contest the decision in Court. The association believed a 5 to 10 per cent hike would have been more reasonable. 

On Monday, we reported that the NCC approved a 50 per cent tariff increase explaining that the decision is necessary to address the widening gap between rising operational costs and stagnant tariffs. The approval is set to see the rate of phone calls increase to N16.5/minute and data to N431.25/GB. 

Expressing their dissatisfaction at the development, the President of NATCOMS, Mr. Deolu Ogunbanjo said the decision to take matters to court was spurred by adequate consultations with key stakeholders including subscribers.

In an interview with NAN, he noted that the decision put a heavy cost on small businesses and telecom consumers. “This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators. It will increase operational costs,” Ogunbanjo stated.

While acknowledging the operation cost hike and financial challenges faced by telecom operators, he cited that a marginal increase of 5% to 10% would have been more acceptable.

“We painfully agreed that, look, a moderate or marginal five per cent to 10% increase will be fine. 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,” he noted

The association’s chief recommended that telecom operators should explore alternative funding sources like Initial Public Offerings (IPO) for Nigerians to buy shares in their companies as a way of raising funds. “However, a situation where a whole 50% is granted for tariff hike is not cheap and it is a no! no! from us subscribers,” Ogunbajo said.

Also Read: Breaking: NCC approves 50% tariff increase for calls, SMS, data.

Like NATCOMS, another telecom subscribers’ association cries out

Another mouthpiece for telecom subscribers, the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) also rejected the proposed telecom tariff hike of not more than 60 per cent while it was being deliberated upon. 

While reacting to the minister’s statement, the Group pointed out that the plan contradicts an earlier agreement reached with the Nigerian Communications Commission (NCC) and key stakeholders in a meeting held on January 9, 2025.

Speaking in response to the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani words that the telecom tariff hike would be between 30 to 60 per cent, the association explained that the agreement reached was that all stakeholders including subscribers would be adequately consulted before any tariff hike would occur. 

“Telecom operators need to respect the telecom subscriber advocacy body and the NCC Act. The NCC should direct telecom operators to engage with ATCIS first for consultation, involvement, enlightenment, and engagement,” ‘Sina Bilesanmi, ATCIS-Nigeria’s National President expressed during Sunday’s press conference.

Additionally, he said that the January meeting with different telecom stakeholders where the minister was at present agreed that there would be no tariff hike until further deliberations were concluded with mobile network operators and subscriber representatives.

“The MNOs, through their representatives at ATCON and ALTON, were tasked with organizing enlightenment programs to address these issues. They were also expected to discuss potential percentage increases with subscriber representatives before taking it to the NCC for final approval,” he added. 

Tariff hike approval

In a Monday statement signed by NCC’s Director of Public Affairs, Reuben Muoka, it explained that the 50 per cent adjustment was necessary to address the widening gap between rising operational costs and stagnant tariffs.

“The NCC has prioritized striking a balance between protecting telecoms consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem,” the statement read.

The approved adjustment, capped at 50 per cent, is far lower than the over 100 per cent increase requested by some operators, reflecting the Commission’s efforts to balance consumer protection with industry sustainability.

The regulator however explained that it recognised the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. The commission also mandated telecom operators to implement the adjustments transparently and in a manner that is fair to consumers.

Operators have been directed to clearly educate consumers on the new rates while demonstrating measurable improvements in service delivery. The Commission also emphasized its commitment to ensuring that tariff rates remain within the guidelines set in its 2013 Cost Study.

NCC decisions followed weeks of deliberation on telecoms tariff hike resulting from demands by telecom operators on the need for a 100 per cent tariff increase to maintain sustainability and cover rising operating costs.