The National Association of Telecoms Subscribers (NATCOMS) has vehemently opposed the proposed 40% increase in telecommunication tariffs in Nigeria, branding the plan as “insensitive” and an added burden for consumers already struggling with economic hardships. Following an emergency meeting, NATCOMS issued a strongly worded communique rejecting the hike, which is reportedly under consideration by the Nigerian Communications Commission (NCC). The association argues that the proposed increases, which would see voice calls rise to N15.40 per minute, text messages to N5.60, and data to N1,400 per gigabyte, will further exacerbate financial strain for millions of Nigerians and restrict access to essential communication services. They contend that the NCC’s consideration of such an increase demonstrates a disregard for consumer welfare, especially given the prevailing economic climate characterized by escalating prices of goods and services.
NATCOMS’s rejection of the tariff hike comes amidst conflicting signals from the NCC. While a source within the commission initially dismissed rumors of a tariff increase planned for January 2025, subsequent reports suggest the NCC is indeed entertaining the proposal from telecom operators. These operators justify their request by citing Nigeria’s challenging macroeconomic environment, marked by high inflation, currency depreciation, and the dollarization of equipment costs. They also highlight the decade-long absence of tariff adjustments and the increasing financial pressure from multiple government levies. However, NATCOMS remains unconvinced, arguing that the operators’ concerns should not come at the expense of consumers who are already grappling with their own financial challenges.
The heart of NATCOMS’s argument lies in the detrimental impact the proposed tariff increases would have on consumers. They assert that a significant portion of the population, potentially two-thirds of telecom subscribers, risks being “priced out of the market,” effectively losing access to essential communication tools. This, they contend, constitutes a clear violation of the NCC’s mandate to protect consumer interests. NATCOMS emphasizes that the burden of existing taxes on telecom services, including the contentious excise duty introduced by the 2020 Finance Act, is already substantial and has forced many subscribers to curtail their communication needs. The proposed tariff hike, they argue, would only worsen this situation.
Furthermore, NATCOMS questions the legality of the excise duty, claiming it amounts to double taxation. The association has filed a legal challenge against the telecom operators and relevant federal agencies, with the case scheduled for hearing at the Federal High Court in Lagos. This legal battle underscores the broader concern surrounding the cumulative impact of various taxes and levies on the cost of telecommunication services. NATCOMS believes that these additional financial burdens are ultimately borne by consumers and contribute to the unaffordability of these crucial services.
While acknowledging the operators’ concerns about escalating operational costs, NATCOMS proposes alternative solutions. Instead of burdening consumers with tariff increases, the association suggests that operators explore avenues like listing their companies on the Nigerian Stock Exchange, thereby opening up public ownership and generating necessary funds without impacting consumer affordability. This approach, they contend, aligns with broader public interests and offers a more sustainable solution to the operators’ financial challenges.
Ultimately, NATCOMS calls on the NCC to rescind its approval for the tariff hike and urges telecom operators to prioritize consumer-friendly strategies to address their financial constraints. The association reiterates its commitment to advocating for policies that promote both affordability and accessibility in the telecom sector, emphasizing that access to communication is a fundamental right, not a luxury. Their opposition underscores the ongoing tension between the need for financially viable telecom operations and the imperative to ensure affordable access to these services for all Nigerians, regardless of their economic circumstances. NATCOMS’s firm stance represents a critical voice in the debate, advocating for consumer protection and equitable access to essential communication services in the face of mounting economic pressures.
