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Telecoms: Reps Urge Minister to Suspend Tariff Hike Until Services Improve
The House of Representatives has called on the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, along with the Nigerian Communications Commission (NCC), to suspend any planned increase in telecommunications tariffs until significant improvements are made in service quality.
This decision followed the adoption of a motion presented by Obuku Oforji, who urged the NCC to reject the proposed tariff hike, citing concerns over poor service delivery and the financial burden on Nigerians.
Concerns Over the Proposed Hike
During his debate, Oforji informed the House that Minister Tijani had, during a meeting with mobile network operators in January, indicated that the NCC was reviewing proposals for a telecom tariff increase, with an official announcement expected soon.
However, the lawmaker opposed the move, arguing that telecom operators must first resolve persistent service issues before considering a price increase. He stressed that raising tariffs at this time would exacerbate financial hardship and hinder Nigeria’s economic development through technology.
Telecom Operators’ Justification
Telecommunications companies have been pushing for a tariff review for over a decade. According to the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), cost-reflective tariffs are necessary due to:
Record inflation of 34.6% as of November 2024
Losses from foreign exchange fluctuations
However, the National Association of Telecoms Subscribers (NATCOMS) strongly opposed the increase, labeling it insensitive and an additional burden on already struggling consumers who continue to experience poor network service.
Potential Impact on Nigerians and Businesses
Oforji warned that a tariff hike would:
Deepen financial struggles for the average Nigerian.
Undermine efforts to leverage technology for economic revival.
Exacerbate poverty and social inequality, hitting low-income families hardest.
Negatively impact digital banking, education, healthcare, agriculture, and e-governance.
Make it harder for informal sector workers and small businesses to stay connected.
He cited estimates showing that a 10% increase in telecom costs could reduce small business profitability by up to 7%, potentially forcing some enterprises to shut down.
Calls for Improved Service Before Any Increase
Lawmaker Billy Osawaru echoed these concerns, criticizing policies that disproportionately affect low-income Nigerians.
“Why is it that when things go wrong in this country, it’s always the poor that suffer? First, it was electricity tariffs; now, telecom companies want to follow suit. Nigerians deserve quality service before any increase is considered.”
Osawaru also pointed out that in developed countries, people do not need to carry multiple mobile phones due to reliable network services—unlike in Nigeria, where network inconsistencies force consumers to use multiple lines.
He concluded that any tariff hike should be delayed until telecom operators demonstrate significant service improvements.
What’s Next?
With the House’s resolution in place, attention now shifts to the NCC and Minister Tijani to see whether they will act on these concerns and ensure that Nigerians receive better services before any tariff adjustments take effect.