50% tariff hike: Telecom subscribers head to court today

Issues surrounding the tariff hike have gained attention over recent weeks with new turns following the 50 per cent adjustment approved by the Nigerian Communications Commission (NCC) last week Monday. A subscribers’ association, the National Association of Telecommunications Subscribers (NATCOMS), heads to court today. 

Recall that last week, we reported that the association revealed its plans to contest the tariff hike approval in Court, stating that a 5 to 10 per cent hike would have been more reasonable. 

NATCOMS President Adeolu Ogunbanjo, during a Tuesday briefing, expressed that the NCC has refused to respond to its request which has left subscribers baffled about the upcoming rising cost of calls and data. 

He stated that the regulator was given until the end of Tuesday to respond and since no response was received, the next move is to commence the court process starting on Wednesday.

Ogunbanjo added that the letter sent to NCC highlighted the burden that the 50 per cent hike places on subscribers, especially for the less privileged and lower-income individuals who rely on affordable communication services for their daily activities.

“Our National Secretary informed us that the NCC has until 11:59 pm today (Tuesday) to respond. They can still reply through their website, which is available 24/7, but with no word from them, we are left with no choice but to proceed with legal action,” the NATCOMS President said. 

While defending their decision last week, he said the move to take matters to court was spurred by adequate consultations with key stakeholders including subscribers, during which he cited that a marginal increase of not more than 10 per cent 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 decision to proceed with court action now seems inevitable, with the association set to release a plea letter today.

Following several calls by telecom operators such as MTN, Globacom, and Airtel on a 100 per cent tariff adjustment to balance their financial statement amidst a rise in operational costs and sustainability measures, the communications regulator approved a 50 per cent tariff increase. 

NCC explained that the decision is necessary to address the widening gap between rising operational costs and stagnant tariffs. The approval will see the rate of phone calls increase to N16.5/minute and data to N431.25/GB. 

Also Read: How the 50% telecom tariff hike will affect Nigerians: an explainer.

More pressure mounts

Representing the first adjustment in over a decade, the 50 per cent telecoms tariff hike approval has sparked various concerns with further court actions and boycott warnings coming from several stakeholders such as the Nigerian Labour Congress (NCC) and Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS).

Last week, the Socio-Economic Rights and Accountability Project (SERAP) issued a 48-hour ultimatum to reverse the tariff increase, calling it “unlawful.” The organization, via its official X (formerly Twitter) account, wrote, “The Tinubu administration and telcos must immediately reverse the unlawful increase in calls and data costs. We’ll see in court if the 50 per cent tariff hike is not reversed within 48 hours.”

In its lawsuit filed last Friday at the Federal High Court in Abuja against President Bola Tinubu’s government, the rights group described the tariff hike as “arbitrary, unconstitutional, unlawful, unfair, and unreasonable.”

In the suit, numbered FHC/ABJ/CS/111/2025, SERAP is asking the court to determine whether the NCC’s decision to authorize the tariff hike violates Nigerians’ freedom of expression and access to information.

SERAP is also seeking “an order of interim injunction restraining the NCC, its officers, agents, privies, assigns, or any other person or persons acting on its instructions from further implementing, enforcing and doing any act to give effect to the decision of the NCC authorizing telecom tariff hike by 50 per cent.”

The 50 per cent tariff hike is structured to take effect from February. 

FG defends tariff adjustment

In a statement signed by its Director of Public Affairs, Reuben Muoka, the NCC 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 Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, also defended the decision to approve a 50 per cent tariff hike for telecom services. In his appearance before lawmakers to defend the ministry’s budget, he explained that the tariff hike was driven by broader economic pressures, including rising inflation and the cost of imported goods.

“Rising inflation and operational costs are the reasons for the recent tariff increase. What most people don’t pay attention to is that historically, we’ve left investment in telecommunications infrastructure to private companies. And these private companies will only go to where they can make money. They use a data set, called night-time satellite data, which will look down on the economy at night,” he noted.

Also, the Finance Minister, Wale Edun supported the adjustment while emphasizing the need to account for rising inflation and operational costs over the past 12 years.

During an interview on Arise News at the 2025 World Economic Forum in Davos, Switzerland, last week, he described the hike as a balancing act, aimed at enabling telecom operators to maintain sustainability while safeguarding consumer interests.

For telecom operators, the tariff hike represents a significant milestone in their long-term sustainability push and contribution to economic development. 

The Chief Executive Officer of MTN Nigeria, Karl Toriola, stated that the development is an important step towards addressing the impacts of the prevailing economic challenges on our business and industry. He noted that it will enable operators to maintain the critical investments required to deliver reliable, high-quality services to Nigerians. 

Likewise, Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, described the adjustment as a critical measure to ensure the survival and growth of the telecommunications sector while protecting consumer interests. He pointed out that the tariff hike reflects a balanced approach to ensuring the sustainability of the telecom sector while safeguarding the interests of consumers.

“The price increase, which was highly needed for the survival and continued growth of the industry, will enable us to continue investing in network infrastructure, expanding coverage, and delivering improved products and services that meet the evolving needs of our customers,” he said.