In response to a motion of urgent national importance introduced by Oboku Oforji, the House of Representatives on Tuesday called for the immediate suspension of the recently implemented 50% increase in telecommunications tariffs.
The lawmakers expressed concern over the poor quality of service from telecom operators and insisted that any tariff hike should only be considered once service delivery improves. The House ordered the Nigerian Communications Commission (NCC) and the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, to halt the increase, citing the current economic hardships faced by citizens.
The call for suspension came as telecom operators in Nigeria began enforcing the tariff hike approved by the NCC earlier. Subscribers on social media reported a noticeable 50% surge in the cost of calls, data, and text messages as of Tuesday.
As of December 2023, Nigeria’s telecommunications sector had over 224 million subscribers, according to official data from the NCC. MTN leads the market with over 87 million subscribers, capturing 38.79% of the market share, followed by Globacom and Airtel, both with 61 million subscribers each. 9mobile has approximately 13.9 million users.
Earlier in January, the NCC approved the 50% tariff hike after considering a proposal from telecom operators, which had initially requested an increase of over 100%. According to Reuben Muoka, a spokesperson for the NCC, the price adjustment was made to reflect ongoing industry reforms aimed at ensuring sustainability in the sector.
The tariff increase is backed by Section 108 of the Nigerian Communications Act, 2003 (NCA), which grants the NCC the authority to regulate and approve tariff rates for telecom operators.
This tariff hike had also sparked opposition from labor unions such as the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), who threatened to strike over the decision. However, their planned industrial action was called off after last-minute discussions with government officials.
Amid these developments, Nigeria’s economy continues to struggle with the aftermath of major policy changes. The removal of energy subsidies and the floating of the naira by President Bola Tinubu’s administration in May 2023 have contributed to significant inflationary pressures. Petrol prices have surged from under N200 per litre to over N1,100 in many regions, while the naira has plummeted from N700/$ to N1,600/$, further exacerbating the country’s cost of living crisis.
