The National Association of Telecommunications Subscribers (NATCOMS) has urged the Nigerian Communications Commission (NCC) to approve a 10% tariff increase for telecom companies.
This call is aimed at helping operators manage rising operational costs, which are threatening the survival of the telecom industry.
Mr. Adeolu Ogunbanjo, the National President of NATCOMS, said that the tariff hike is vital for the telecom sector to continue delivering services.
He warned that if nothing is done, the quality of telecommunications services will continue to decline.
Speaking to the News Agency of Nigeria (NAN), Ogunbanjo emphasized that telecom companies are facing financial challenges due to rising prices of essentials like petrol and diesel.
These essentials are needed to keep their networks operational, but their costs have skyrocketed, putting a heavy burden on the companies.
“It is important for the NCC to approve the 10% increase,” Ogunbanjo said.
He added that while this increase may seem high, it is necessary to improve the quality of services.
He noted that telecom companies have not raised their charges in 11 years, despite rising costs in almost every sector of the economy.
Ogunbanjo pointed out that the rising cost of diesel and other essentials is making it difficult for telecom companies to continue operating efficiently.
He stressed that the tariff hike would allow telecom companies to improve their services, benefiting millions of Nigerian subscribers.
“When you look at the quality of service from telecoms today, it is very poor,” Ogunbanjo noted.
He further explained that telecom companies have been complaining about how expensive it is to keep their operations running smoothly.
“The telecom companies are struggling,” he said, adding that costs have increased across the board, and the industry is feeling the pinch.
According to Ogunbanjo, without the tariff increase, the telecom industry might face even more serious challenges.
He said that stakeholders must find a balanced solution to prevent further damage to the industry.
Ogunbanjo referenced a recent workshop by economist Bismarck Rewane, Managing Director of Financial Derivatives, who described the telecom industry as being in an “intensive care unit.”
Rewane’s statement highlighted the severity of the financial challenges faced by the telecom sector.
Ogunbanjo stressed the importance of listening to economic experts and warned that ignoring the problem could have disastrous consequences.
“We need to take our macroeconomists seriously,” Ogunbanjo said.
He argued that the situation in the telecom sector is dire, and urgent action is required to prevent a collapse.
Ogunbanjo also rejected the idea of telecom companies implementing load shedding as a solution to their financial problems.
Load shedding, which involves limiting telecom services to certain areas at specific times, has already begun in some regions.
This practice prioritizes high-revenue areas, leaving other parts of the country with poor network quality.
Ogunbanjo compared the practice to the rationing of electricity in Nigeria, where some areas get power for limited hours while others go without.
He warned that load shedding in telecoms would have devastating effects on critical sectors such as banking, healthcare, and education.
“Imagine service being off for a whole day in a week,” Ogunbanjo said.
“This would disrupt businesses, many of which rely on virtual meetings and online transactions.”
Ogunbanjo cautioned that subscribers would not accept load shedding quietly.
He warned that telecom companies could face a backlash from angry customers if they continue with this practice.
“If they go ahead with load shedding, subscribers will hold them accountable for any disruptions,” Ogunbanjo said.
He expressed concern that the negative effects of load shedding could ripple through the economy, further damaging Nigeria’s fragile financial system.
Ogunbanjo urged the NCC to consider the long-term effects of neglecting the telecom industry’s financial struggles.
He argued that approving the 10% tariff hike would be a step in the right direction.
The additional revenue could be used to improve services, ensuring that Nigerians receive better quality network connections.
He also encouraged stakeholders to work together to find sustainable solutions that balance the needs of telecom companies and their subscribers.
“We need to act fast before it’s too late,” Ogunbanjo concluded.
