The National Association of Telecommunications Subscribers (NATCOMS) has vowed to challenge the decision of the federal government to allow telecommunications operators’ increase the chargeable tariff on their services by 50 per cent in a court of law.
NATCOMS president, Mr. Deolu Ogunbanjo, who spoke to the News Agency of Nigeria (NAN) in Lagos said that the Nigerian Communications Commission (NCC) did not carry the association along in the arrangement.
NCC had earlier announced a tariff hike for telecom operators, capping the increase at 50 per cent.
NCC’s director of public affairs, Reuben Muoka in a statement yesterday announced that a tariff adjustment for telecommunications operators was approved, in line with the commission’s powers under Section 108 of the Nigerian Communications Act, 2003 (NCA), which allows the regulator to approve and regulate tariff rates and charges.
NCC, however, clarified that the tariff increase was in response to prevailing market conditions. Adding that it has been capped at 50 per cent , which is below the 100 per cent hike requested by the telecom operators.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised. The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” Muoka stated.
The NCC also noted that these adjustments would remain within the tariff bands specified in the 2013 NCC Cost Study, and each request would be reviewed individually, as is customary during tariff reviews.
“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,”
he added.
NCC, however, assured Nigerians that the decision followed extensive consultations with key stakeholders from both the public and private sectors.
In a swift reaction to the development, Ogunbanjo described the increment as unacceptable, as he insisted that NATCOMS was not involved in the decision taking process.
“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.
