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Telecoms: Legislators direct Minister, NCC to suspend tariff hikes for network operators

*Nigeria’s House of Representatives, in the National Assembly directs the Nigerian Communications Commission to suspend the 50 percent telecoms tariff hikes for Mobile Network Operators, stating the far-reaching effects of tariff increments will deepen financial struggles millions of consumers, threaten the country’s vision of leveraging techs to drive economic revival, and exacerbate poverty among vulnerable families

Gbenga Kayode | ñ

The House of Representatives, in the National Assembly (NASS) at the plenary Tuesday, February 11, 2025, in Abuja, FCT, directed Dr. ‘Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy as well as the Nigerian Communications Commission (NCC) to suspend the recently approved 50 percent hikes for the Mobile Network Operators (MNOs) in the country.

ñ reports the NCC’s recent approval 50 percent telecoms tariff increments for the network operators has continued to generate mixed reactions from both public and private sectors of the economy.

Earlier, the Association of Licensed Telecommunications Companies of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), had lamented that the Telcos were facing a shutdown due to a 300 percent rise in their operating costs in the economy.

The House of Representatives in session

Following the NCC’s approval for the MNOs’ proposal for tariff increments, ALTON, ATCON, the National Civil Society Council of Nigeria (NCSCN), as well as MTN Nigeria Communications Plc, Airtel Networks, and other network operators have since hailed the move.

However, others, including the Nigeria Labour Congress (NLC), and its sister Labour union, the Trade Union Congress (TUC), are still up against the tariff increments for the country’s network providers.

The House motion to urge NCC to suspend telecoms tariff approval

The Federal lawmakers have equally cited the economic hardship being experienced by Nigerian consumers, largely attributed to the removal of fuel, and “partly” electricity subsidies

After expressing mixed reactions to the burning issue, the latest decision of the House of Representatives followed to the adoption of a motion of urgent public importance sponsored by Hon.  Oboku Oforji, a member of the Peoples Democratic Party from Bayelsa State.

Hon. Oforji through the motion titled, “Need for the Nigerian Communications Commission not to approve the impending hike in the telecommunications tariffs”, contended although the telecommunications companies proposed the tariff increases based on the rising operational costs and the need for better service delivery to consumers, the same Nigerians are already going through a lot, just to put food on the table.

The legislator stated: “The House is aware that telecommunications companies have been advocating the hikes for the last eleven years.

“The Association of Licensed Telecoms Operators of Nigeria and the Association of Telecommunications Companies of Nigeria argued that the Telcos need cost-reflective tariffs in the face of adverse economic realities like record inflation of 34.6 percent in November 2024 and losses resulting from foreign exchange fluctuations.”

Oforji also reminded his colleagues that “The National Association of Telecoms Subscribers has rejected the proposed increase in tariffs, describing it as insensitive and a further burden on consumers already grappling with economic hardship, and poor network service delivery.

“The telecommunications companies must improve on their service delivery (poor network), which Nigerians have been yearning for for years, before embarking on the increase in their tariffs.”

The legislator said: “The far-reaching effects of these price hikes will deepen financial struggles for the average Nigerian, threaten the country’s vision of leveraging technology to drive economic revival, exacerbate poverty and widen existing inequalities, hitting lower-income families the hardest.”

‘Affordability is a must for progress’

Emphasising the importance of affordable telecoms services for marked progress in the Nigerian economy, Hon. Oforji noted: “Affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e-governance. “Informal sector workers who depend on affordable mobile data to access gig work opportunities may find it harder to stay connected.”

He further argued that small businesses “which rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burden.

“It is estimated that a 10 percent increase in telecommunications costs would reduce small business profitability up to 7 percent, potentially leading to the closure of businesses.”

Telcos need capital for investments, improved QoS and consumer satisfaction but…. -Hon. Okafor

Also contributing to the debate during the plenary Tuesday, Hon. Dominic Okafor, a member of the All Progressives Grand Alliance, however, justified NCC’s approval for telecoms tariff increments for the MNOs.

Hon. Okafor contended that without the tariff hikes, service providers might find it difficult to deliver consumer satisfaction to millions of Nigerians.

He also said: “For these telecoms service providers to improve their performances, they need to make money to make further investment in infrastructure but this increment should not go as high as 100 percent.”

Why Nigerian telecoms consumers own more than one mobile phone, by Billy Osawaru

But Hon. Billy Osawaru, a Federal lawmaker from Edo State, countered Okafor’s position, as he urged the telecoms service providers to first improve the quality of their services before coming up with a proposal for tariff hikes.

Osawaru said: “Why is it that when things go wrong in this country, the poor people must suffer?

“First, it was electricity tariffs, now it is the turn of the telecoms companies. Nigerians must enjoy these services.”

He explained his position on the matter, saying, “in the developed world, people are not used to carrying two mobile phones, but this is the practice here.

“The thinking is if there is no service in one, you might be lucky with the other one.

“I believe that this increase in tariff should wait until services improve.”

After the adoption of the motion, the House of Representatives, therefore, urged the Minister for Communications, Innovation and Digital Economy and the Nigerian Communications Commissions (NCC) to suspend the hikes in telecommunications tariffs until their service improved.

Meanwhile, MTN Nigeria Communications Plc has activated the controversial tariff increments for data and Short Messaging Service (SMS) by as much as 200 percent for telecoms consumers, according to reports.

It was gathered that MTN Nigeria had raised the price of its weekly 15GB data plan to N6,000 from N2,000 to the outcry of many Nigerians.

However, several MTN Nigeria subscribers and other telecoms consumers in the digital ecosystem have taken to X to express their frustrations.

“Nigeria is a very difficult place to live in, honestly. MTN waking up one day to increase their weekly 15 GB data from 2k to 6k without prior warning is textbook insanity.

“That’s 24k in a month, almost the minimum wage of the country on data, bruh, this is hell,” tweeted @TheSilvapr.

“MTN increasing the cost of its 15 GB data subscription from 2k to 6k is a significant price hike, and it reflects the true economic and business realities rather than just a random decision.

“Complaining Won’t Change Anything because Telecom operators have to operate within a profit-driven system,” wrote @official_GZU.

Aside from the 15GB tariff plan increase, the telco has also raised the cost of other plans. The revised price increase now includes a 1.8GB monthly plan for N1,500, replacing the previous 1.5GB plan priced at N1,000.

Its 20GB plan has been adjusted to N7,500, up from N5,500, while the 15GB plan now costs N6,500, up from N4,500.

Its 90-day 1.5TB plan has jumped from N150,000 to N240,000, and the 600GB 90-day plan increased from N75,000 to N120,000, report also noted.

Its two/three-month data plan of 100GN for N20,000 is now 90GB for N25,000; 160GB for N30,000 is now 150GB for N40,000.

For now, Airtel and Globacom are yet to review their prices. Yet, all Telcos are expected to follow MTN’s lead after the Nigerian Communications Commission’s recently-approved a 50 percent increase in the cost of calls, data, and SMS for the first time in a decade.

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