Nigerian telecom subscribers are preparing for a legal battle against the federal government over the approval of a 50% increase in telecom tariffs for calls, data, and text messaging. This decision, facilitated by the Minister of Communications and Digital Economy, Bosun Tijani, has ignited widespread public anger, with accusations that the government is compounding the hardships citizens already face.
Subscribers, under the umbrella of the National Association of Telecoms Subscribers (NATCOMS), expressed dismay, citing earlier discussions in which a milder increase of 5-10% was reportedly agreed upon. Speaking to journalists, the association’s president, Adeolu Ogunbanjo, warned of the devastating ripple effects of the 50% hike, both for individual users and businesses.
“Hike Will Deepen Poverty”
“It is unfortunate that Minister Bosun Tijani is spearheading this increase,” Ogunbanjo lamented. “Subscribers were prepared to manage a small increase, but 50% is unacceptable. This hike will worsen the current economic hardships, from fuel prices to transportation and food costs.”
Highlighting the anticipated impacts, Ogunbanjo revealed that call rates could rise from N11 to N16.50 per minute, text messaging from N4 to N6, and 1GB of data to N431.25. The move is expected to bring telecom operators substantial revenue boosts, with outgoing call traffic alone forecast to generate N6.7 trillion annually, based on 2023 data showing 205.3 billion minutes of outgoing calls.
However, NATCOMS argues that these projected profits will come at an unbearable cost to Nigerians, who already face steep increases in living expenses.
“Every Business Will Feel the Heat”
The effects of the new tariff structure will likely extend beyond telecom users. Businesses, especially those relying on telecom services, are bracing for tougher times. Point of Sale (POS) operators have already hinted at plans to raise service fees to cope with increased operational costs.
According to Ogungbayi Ganiyu, National Spokesperson for the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), members of his organization might have no choice but to pass on the cost to customers.
“The telecom hike directly impacts our members’ activities, especially data services. We’ve not finalized decisions, but this development could force POS operators to increase their charges,” Ganiyu said.
He also emphasized the critical role POS operators play in bridging banking services to rural areas, urging telecom providers and the government to minimize measures that hurt such sectors.
Contextual Background
Telecom operators have been pushing for a tariff review since 2024, citing rising costs of operations, including diesel prices, maintenance fees, and inflation. At a meeting with industry stakeholders, they proposed a 100% tariff hike, but Minister Tijani intervened, endorsing a more “modest” 30-50% adjustment.
This is the first telecom pricing template update in over a decade. The Nigerian Communications Commission (NCC) last updated rates in 2013, and industry players argue that the old rates are no longer viable in the face of current realities.
Nevertheless, critics contend that this hike comes at the worst possible time, with Nigeria still grappling with an inflation rate of 38.9% as of December 2024, coupled with widespread protests against soaring fuel prices and cost-of-living crises under President Bola Ahmed Tinubu’s administration.
Legal Action Brewing
Subscribers insist the government’s move is exploitative and plan to challenge it in court. Ogunbanjo noted, “We have already engaged legal practitioners to fight this. The approval was arbitrary and doesn’t reflect the subscribers’ capacity or earlier agreements.”
He called on the government and telecom companies to explore alternative funding sources, such as the capital market, to meet their financial needs instead of burdening Nigerians.
“This tariff hike is not just a telecom issue; it’s an economic issue that will touch every part of our lives. If companies and POS agents adjust their rates, ordinary Nigerians will suffer more,” Ogunbanjo warned.
Calls for Intervention
Civil society organizations, advocacy groups, and economists have joined voices with NATCOMS, demanding a suspension of the tariff hike and broader consultations with consumers. Many argue that the hike is counterproductive at a time when access to affordable communication is critical for economic and social growth.
For telecom operators, the decision represents a middle ground between profitability and affordability, but it has sparked discussions on regulatory oversight and public consultation in policymaking.
