The National Association of Telecoms Subscribers (NATCOMS) has vowed to challenge the Nigerian Communications Commission (NCC)’s recent approval of a 50% increase in telecom tariffs.
In a statement released on Monday, the NCC announced the approval of the tariff hike, citing increased operational costs faced by telecommunications operators. While the NCC capped the increase at 50%, lower than the 100% initially requested by some operators, NATCOMS believes the increase is excessive and unjustified.
“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators,” said Deolu Ogunbanjo, President of NATCOMS. “It will increase operational costs.”
Ogunbanjo argued that while the telecoms industry faces challenges, a 50% tariff increase is excessive and will disproportionately burden subscribers. He suggested that operators explore alternative funding options, such as Initial Public Offerings (IPOs), to raise capital instead of imposing a significant burden on consumers.
“We do not mind an increase if it is just a five per cent to 10 per cent increase,” Ogunbanjo said. “However, a situation where a whole 50 per cent is granted for a tariff hike is not cheap and it is a no! no! from us subscribers. We will challenge this in court.”
NATCOMS had previously recommended a marginal increase of 5-10% in tariffs, acknowledging the challenges faced by the telecoms industry. However, they believe the approved 50% increase is excessive and will negatively impact consumers and the overall economy.
This development highlights the ongoing tension between the need to ensure the financial viability of the telecoms sector and the need to protect the interests of consumers.
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