The Nigerian Communications Commission’s (NCC) recent approval of a 50% increase in telecom tariffs has sparked widespread controversy, with telecom operators welcoming the decision while consumer groups strongly oppose it. Operators argue that the hike is necessary to offset rising operational costs, including energy expenses, infrastructure maintenance, and naira devaluation. The Association of Licensed Telecommunication Companies of Nigeria (ALTON) sees it as a critical step for industry sustainability, while MTN Nigeria’s CEO highlights its importance for network expansion and improved service quality.
On the other hand, consumer advocacy groups, including the National Association of Telecommunications Subscribers (NATCOMS), have condemned the move, calling it excessive and detrimental to low-income users and small businesses. NATCOMS President Adeolu Ogunbanjo suggests alternative funding mechanisms like IPOs and warns that the hike could burden essential services such as banking and education. He also raises concerns about unresolved debts between telecom firms and banks, questioning the necessity of such a sharp increase.
In response, the NCC defends the decision, stressing the need to balance consumer interests with industry sustainability. The commission assures continued engagement with stakeholders to maintain a competitive and accessible telecom environment. With the new tariff structure, Nigerians may see call rates rise from N11 to N16.5 per minute, SMS costs increase from N4 to N6, and 1GB of data climb to N431.25. The move could generate N6.7 trillion annually for telecom firms from call revenue alone, fueling further debate over its economic impact.
Source: THE SUN