Nigerians are taking a firm stand against the controversial 50% increase in telecom call and data tariffs, with telecom subscribers and advocacy groups escalating their opposition to the courts after unsuccessful attempts to engage with the Nigerian Communications Commission (NCC).
The National Association of Telecommunications Subscribers (NATCOMS) announced plans to initiate legal proceedings against the NCC on Wednesday, after the regulator failed to address its demand for a reduction of the hike to a more manageable 10%. The tariff increase, announced on January 22, marks the first adjustment in over a decade and has sparked widespread criticism from several groups, including the Socio-Economic Rights and Accountability Project (SERAP) and the Nigeria Labour Congress (NLC).
NATCOMS, which represents 157 million Nigerians who rely on affordable telecom services, raised alarms that the hike disproportionately affects low-income households and small businesses already struggling with inflation and a volatile economy. The subscriber group made one final attempt to engage the NCC, sending a letter last Friday requesting a reconsideration of the hike. However, as of Tuesday, the regulator had not responded.
NATCOMS President, Adeolu Ogunbanjo, told journalists that the group had given the NCC until the end of Tuesday to reply, and with no response, they are now moving forward with legal action starting Wednesday. “We’ve been left with no choice but to proceed with the court process,” Ogunbanjo said.
Meanwhile, SERAP filed its own lawsuit at the Federal High Court in Abuja on Friday, challenging the tariff hike as “arbitrary, unconstitutional, unlawful, unfair, and unreasonable.” In its suit, SERAP argues that the NCC’s decision infringes on Nigerians’ rights to freedom of expression and access to information, asking the court to block the hike until further notice.
Telecom operators, for their part, have justified the tariff increase as a necessary step to ensure the sustainability of their businesses, amid rising operational costs. Several major operators, including MTN, have outlined plans for infrastructure upgrades and improvements in service delivery to justify the hike in the eyes of consumers.
However, analysts caution that the tariff increase alone will not address the sector’s deeper challenges. Despite the hike, telecom operators continue to face difficulties related to volatile exchange rates and other financial pressures, which have strained their ability to plan long-term investments.
Government Support and Industry Reactions
While the telecom industry faces pushback from consumers, some government officials and industry stakeholders have expressed support for the tariff adjustment. Finance Minister Wale Edun, speaking at the World Economic Forum in Davos, Switzerland, emphasized the need to account for inflation and rising operational costs accumulated over the past 12 years. He described the hike as a necessary balancing act to ensure the survival of telecom operators while safeguarding consumer interests.
The Lagos Chamber of Commerce and Industry (LCCI) also voiced support for the hike, urging telecom operators to focus on improving service delivery and operational efficiency to justify the increase. LCCI Director-General Chinyere Almona called for better service quality to help drive down operational costs for businesses.
Telecom CEOs, including MTN Nigeria’s Karl Toriola and Airtel’s Dinesh Balsingh, defended the hike as critical for the sector’s growth and sustainability. Toriola noted that the adjustment is necessary to address the financial pressures faced by the telecom industry and ensure long-term service quality. Balsingh echoed this sentiment, highlighting that the increase will help telecom companies invest in infrastructure, expand coverage, and enhance service delivery.
Despite the ongoing legal challenges, the NCC’s decision to approve the 50% tariff hike is moving ahead, with the increased rates set to take effect in February. The final outcome of the court cases could determine whether the hike proceeds or is modified in response to mounting public pressure.
