21 January 2025
The National Association of Telecommunications Subscribers, NATCOMS, has vowed to challenge Federal Government’s decision to approve a 50 per cent tariff increase to telecoms operators in a court of law.
President of NATCOMS, Mr Deolu Ogunbanjo, disclosed in an interview with NAN in Lagos, that the Nigerian Communications Commission, NCC, did not carry the association along in the arrangement.
Ogunbanjo said that NATCOMS understood the dilemma faced by the telecommunications industry and had suggested between five and ten per cent marginal increase in tariff.
He said that was unacceptable for the federal government to grant telecoms operators approval to hike tariffs capped at 50 per cent maximal increment.
“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 NATCOMS boss, economic experts had earlier x-rayed the telecoms sector and said that it was in intensive care, meaning that it needed attention.
“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 will be fine.
READ MORE; NCC Approves 50% Tariff Increase For Telecom Operators
”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.
Ogunbanjo, 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 on Monday released a statement that it has approved a maximal increment of 50 per cent tariff adjustments to telecom operators in response to prevailing operational costs.