The National Association of Telecommunications Subscribers (NATCOMS) has vowed to challenge the Federal Government’s decision to allow telecoms operators increase tariff by 50 per cent in a court of law, describing the Nigerian Communications Commission (NCC’s) decision as unacceptable.
In an interview with the News Agency of Nigeria (NAN) in Lagos on Monday – yesterday, January 20 – President, NATCOMS, Mr Deolu Ogunbanjo, said the Nigerian Communications Commission (NCC) did not carry the association along in the arrangement.
Ogunbanjo said that NATCOMS having understood the dilemma faced by the telecommunications industry, had suggested a five to 10 percent marginal increase in tariff, stating that the approval by the federal government for telecoms operators to hike tariffs but capped at 50 per cent maximal increment is unacceptable.
“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,” he said.
According to Ogunbanjo, earlier, economic experts had x-rayed the telecoms sector and said that it was in intensive care, meaning that it needed to be attended to.
“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it.
“So, that is why we painfully agreed that, look, a moderate or marginal five per cent to 10 per cent increase would be fine.
”You know, 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.
“So, we appreciate that. It’s painful, but we granted. We said, okay, we will not mind if it is just five per cent to 10 per cent increase,’’ he said.
The NATCOMS boss stressed that, if the operators really needed funds, they should explore the Nigerian Exchange for options to raise funds.
“The industry operators can opt for an Initial Public Offer (IPO) for Nigerians to buy shares in their companies as a way of raising funds.
“However, a situation where a whole 50 per cent is granted for tariff hike is not cheap and it is a no! no! from us subscribers.
“I mean, for what we are already going through, no for us, we will challenge this in court,’’ Ogunbanjo insisted.
The Nigerian Communications Commission (NCC), the industry’s regulatory body yesterday – Monday, January 20 – released a statement saying it had acceded to the requests of operators to hike tariffs.
This was contained in a statement signed by the Director, Public Affairs of the NCC, Dr. Reuben Muoka.
The NCC said it had approved a maximal increment of 50 per cent tariff adjustments in response to prevailing operational costs, noting that that is less than the 100 per cent demanded by some telecoms operators.
NCC said its decision was in pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.
The NCC said that, while recognising the concerns of the public, the decision was made after extensive consultations with key stakeholders across the public and private sectors.
“The NCC has prioritised 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 NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments.
“To this end, the commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers,” the statement read, in part.
According to the Commission, these adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity.
The NCC added that consumers would benefit from better network quality, enhanced customer service, and greater coverage within the country.
