National news
Legal Battle Looms As Nigerians Drag FG To Court Over Tariff Increase
- Nigerians to Drag FG to Court Over 50% Telecom Tariff Hike
- Reject 50% price increase
- Cite Growing Economic Pressure in The Country
Nigerians have expressed their frustration and vowed to take legal action against the federal government following the approval of a 50 percent increase in telecommunications tariffs.
The decision, which affects the cost of calls, data, and other telecom services, has been met with widespread condemnation and warnings of further economic strain on citizens.
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The President of the National Association of Telecoms Subscribers (NATCOMS), Adeolu Ogunbanjo, and the National Spokesperson for the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), Ogungbayi Ganiyu, voiced these concerns in separate interviews with journalists. Both leaders criticized the decision as insensitive to the plight of Nigerians already grappling with rising costs of living.
On Monday, the Nigerian Communications Commission (NCC) granted approval for Mobile Network Operators (MNOs) to increase service tariffs by up to 50 percent. This decision follows a series of meetings with telecom operators who had initially proposed a 100 percent hike, citing operational challenges and inflationary pressures.
NCC
The Minister of Communications and Digital Economy, Bosun Tijani, had hinted at the increase, stating it would likely fall between 30 and 50 percent.
Under the new regime, the cost of making calls will rise from N11 to N16.5 per minute, SMS charges will increase from N4 to N6, and 1GB of data will cost N431.25. These adjustments come 13 years after the NCC last introduced a price template in 2013.
Industry analysts estimate that telecom operators could generate N6.7 trillion annually from calls alone under the new tariff system, based on 2023 national telephone traffic data, which recorded 205.3 billion outgoing minutes and 203.2 billion incoming minutes.
Reacting to the development, Ogunbanjo declared that NATCOMS and its members have rejected the hike and are preparing to challenge it in court. He argued that subscribers had reluctantly agreed to a modest 5-10 percent increase but deemed the 50 percent rise excessive and exploitative.
“We understand the operational challenges faced by telcos, but this increase is unacceptable.
The government and the NCC should explore other options, such as encouraging telecom operators to seek funds from the capital market. This decision will worsen the hardship faced by Nigerians, who are already dealing with increased costs of fuel, transportation, and food,” Ogunbanjo said.
He further criticized Minister Bosun Tijani for endorsing the hike, accusing him of failing to prioritize the welfare of Nigerians. “The minister should be a champion for the people, not a tool for impoverishment. This decision reflects a lack of empathy for the struggles of ordinary Nigerians.”
Similarly, AMMBAN’s spokesperson, Ogungbayi Ganiyu, warned that the tariff hike would have a cascading effect on other sectors, including the financial services industry. He noted that Point of Sale (POS) operators, whose services rely heavily on telecom networks, may be forced to increase their charges, further burdening consumers.
“This tariff hike will significantly impact our operations. Data is a crucial component of our services, and any increase in telecom costs will inevitably affect our charges. While some operators may try to absorb the costs, many will have no choice but to pass them on to customers,” Ganiyu explained.
The latest decision has sparked outrage among Nigerians, many of whom view it as another blow to their purchasing power amid inflationary pressures. The National Bureau of Statistics (NBS) reported that food inflation stood at 38.9 percent in December 2024, exacerbating the economic strain on households.
Critics have also highlighted the government’s perceived insensitivity, pointing to recent increases in fuel prices and electricity tariffs. “This is a multiplier effect we can’t afford. Every sector will be affected, from businesses to households. The government needs to rethink this decision and prioritize economic stability over corporate profits,” Ogunbanjo added.
As Nigerians prepare to challenge the decision in court, calls for a comprehensive review of the telecom sector’s pricing structure have intensified. Stakeholders are urging the government to balance the interests of telecom operators with the need to protect consumers from excessive financial burdens.
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The coming weeks will determine whether the federal government and the NCC will reconsider the decision or face legal battles and potential unrestfrom dissatisfied citizens.
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