NATCOMS to Contest 50% Telecos Tariff Hike in Court

The National Association of Telecommunications Subscribers (NATCOMS) has announced plans to contest the Federal Government’s approval of a 50% tariff hike for telecom operators in court.

This decision, according to NATCOMS, was made without adequate consultation with key stakeholders, including subscribers.

Mr. Deolu Ogunbanjo, President of NATCOMS, expressed dissatisfaction with the tariff increase approved by the Nigerian Communications Commission (NCC) in an interview with NAN.

He described the decision as burdensome, particularly for small businesses and individual subscribers.

“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators. It will increase operational costs,” Ogunbanjo stated.

He acknowledged the financial challenges facing the telecommunications sector but emphasised that a marginal increase of 5% to 10% would have been more acceptable.

“We painfully agreed that, look, a moderate or marginal five per cent to 10% increase will be fine. We do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s Gross Domestic Product,” he added.

Ogunbanjo suggested that telecom operators explore alternative funding sources, such as Initial Public Offerings (IPO), to raise capital instead of imposing a 50% tariff increase on subscribers.

“The industry operators can opt for an Initial Public Offer (IPO) for Nigerians to buy shares in their companies as a way of raising funds.

However, a situation where a whole 50% is granted for tariff hike is not cheap and it is a no! no! from us subscribers,” he insisted.

Ogunbanjo confirmed that NATCOMS would challenge the decision in court, citing the financial strain the hike would impose on subscribers already grappling with economic challenges.