The Nigerian Communications Commission (NCC) has approved a 50% tariff increase for telecommunications services, sparking a storm of reactions from industry stakeholders and subscribers alike.
The Association of Telecommunications Companies of Nigeria (ATCON), representing telecom operators, has backed the NCC’s decision, emphasizing that the increase is a lifeline for the struggling sector. However, subscribers, through the National Association of Telecommunications Subscribers (NATCOMS), have vowed to resist the hike, calling it exploitative and unjustified.
Operators: A Step Towards Sustainability
In a statement signed by ATCON President Tony Izuagbe Emoekpere, the association acknowledged the NCC’s decision as a partial solution to the industry’s woes.
“While the approved tariff adjustment, capped at a maximum of 50%, does not fully address the operators’ request for a 100% increase, we understand that this is a step towards bridging the gap between operational costs and revenues,” Emoekpere said.
According to ATCON, telecom operators have endured a decade of stagnant tariffs despite the rising cost of operations. Factors such as inflation, a volatile exchange rate, and the soaring cost of fuel and electricity have put immense financial pressure on the industry.
“The telecommunications sector remains dedicated to contributing to national development and economic growth by fostering an environment of sustained investment,” ATCON noted.
The association also highlighted that the additional revenue from the tariff hike would be reinvested into the sector. “This adjustment will enable operators to continue investing in infrastructure, expand coverage, and improve service quality for the benefit of all Nigerians,” it added.
Subscribers: “We Were Not Consulted”
The tariff increase has not gone down well with subscribers, who argue that they were excluded from the decision-making process. NATCOMS, the umbrella body for telecom subscribers, described the NCC’s approval as unfair and vowed to challenge it in court.
Adeolu Ogunbanjo, the President of NATCOMS, accused the NCC and telecom operators of disregarding consumer interests. “The tariff hike was implemented without adequate consultation with subscribers. We will not sit back and allow consumers to be burdened with unjustifiable costs,” he said.
NATCOMS has further claimed that the decision was rushed and lacked transparency, calling for a comprehensive review of the circumstances surrounding the hike.
The Financial Squeeze
For telecom operators, the financial strain is undeniable. The cost of maintaining and expanding networks has skyrocketed in recent years. Industry experts point to Nigeria’s persistent power supply issues, which force telecom companies to rely heavily on diesel generators to power base stations.
The naira’s devaluation has also driven up the cost of importing equipment and technology needed to keep networks running. Meanwhile, the sector has faced mounting pressure to improve service quality and expand coverage to underserved rural areas.
According to NCC data, Nigeria had over 220 million active mobile subscriptions as of late 2024. Despite this robust customer base, the sector’s growth has been hampered by dwindling profits and operational challenges.
Balancing Consumer and Industry Interests
The NCC’s decision is seen as a delicate balancing act between safeguarding consumer interests and ensuring the telecom sector’s sustainability. However, critics argue that the burden of the tariff increase should not fall solely on subscribers.
A telecommunications analyst, Segun Ojo, noted that while the tariff hike was inevitable given the industry’s challenges, transparency and effective communication with consumers were crucial.
“The NCC and operators need to provide a detailed breakdown of how the additional revenue will be utilized. Subscribers deserve to know what they are paying for,” Ojo said.
Path Forward
ATCON has called for continued dialogue with the NCC to address unresolved industry issues while ensuring consumer satisfaction. “We urge the NCC to maintain open engagement with telecom operators to tackle ongoing challenges,” the association stated.
On the other hand, NATCOMS insists that no increase should be implemented without addressing subscribers’ concerns. “We are not against progress in the telecom sector, but it must not come at the expense of the average Nigerian,” Ogunbanjo reiterated.
The Larger Picture
Telecommunications is a critical driver of Nigeria’s economy, contributing significantly to the country’s GDP. The sector has also played a pivotal role in digital transformation and financial inclusion. However, the recent tariff hike underscores the growing tension between profitability and affordability.
As the battle over the tariff increase intensifies, industry watchers are urging stakeholders to find a middle ground. Whether through legal challenges, public consultations, or regulatory interventions, the outcome will likely shape the future of Nigeria’s telecommunications landscape.
