The National Association of Telecoms Subscribers (NATCOMS) has rejected the Nigerian Communications Commission’s (NCC) approval of a planned 40% tariff hike on telecommunication services in the country.
In a communiqué issued after an emergency meeting of its National Exco, NATCOMS called on the NCC to annul its decision and reconsider the impact on consumers.
The communiqué, signed by National President Adeolu Ogunbanjo and National Secretary Bayo Omotubora, criticized the proposed increase, which would raise prices for voice calls, SMS, and data.
According to NATCOMS, under the new tariff regime, the cost of a voice call would rise from N11 to N15.40 per minute, SMS rates would increase from N4 to N5.60, and the price for a 1GB data bundle would jump from N1,000 to N1,400. This, the association argued, would make telecom services unaffordable for two-thirds of Nigeria’s telecoms subscribers, especially given the country’s harsh economic realities.
NATCOMS also expressed concerns over the proposed 12.5% tax rate on telecom services, which it claims would further burden consumers already struggling with rising costs of goods and services. “This tariff hike is a complete negation of the statutory duty of the NCC to protect telecom services consumers,” the statement read.
While acknowledging that telecom operators have faced increased operational costs, including government levies and dollarized equipment costs, NATCOMS suggested that there are other avenues through which operators could raise funds. The association proposed that telecom companies consider the Nigerian Stock Exchange as a potential platform for generating revenue, rather than passing the costs onto consumers.
The proposed hike, according to NATCOMS, comes at a time when the prices of goods and services have already reached alarming levels, adding to the financial burden on citizens. The association further reminded the NCC that telecom services are taxable under the Value Added Tax Act, with a previous VAT increase from 5% to 7.5% in 2019, which had already caused hardship for many subscribers.
“NATCOMS urges the NCC to reconsider its decision in the interest of the general public, as this additional burden is one too many for citizens already struggling to make ends meet,” the communiqué concluded.
In response, the NCC dismissed the concerns raised by NATCOMS, advising that all speculation surrounding the tariff hike should be disregarded. The Commission promised to issue an official statement to clarify the situation for the public.
As the new year approaches, subscribers are left grappling with the potential impact of these increased costs, with many fearing it could price them out of essential communication services.
