The National Association of Telecommunications Subscribers on Monday said it would challenge the Federal Government’s decision to allow telecom operators to increase tariff by 50 percent in a court of law.
The President of NATCOMS, Deolu Ogunbanjo, revealed this move in an interview with the News Agency of Nigeria in Lagos.
He said that the Nigerian Communications Commission did not carry it along in the process of the upward review of tariffs.
Ogunbanjo said that NATCOMS understood the dilemma faced by the telecommunications industry and had suggested a five percent to 10 percent marginal increase in tariff.
He said that the approval by the Federal Government for telecom operators to hike tariffs but capped at 50 percent maximal increment was unacceptable.
He said: “This will affect everyone from the biggest industry to the smallest company such as the Point of Service operators.
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“It will increase operational costs.”
According to Ogunbanjo, earlier, economic experts had x-rayed the telecoms sector and said that it was in intensive care, meaning that it needed to be attended to.
He said: “We now depend on telecoms for our meetings, for the banks, everybody depends on it, even the education sector, yes, a lot of things depend on it.
“So, that is why we painfully agreed that, look, a moderate or marginal five percent to 10 percent increase will be fine.
”You know, 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.
“So, we appreciate that.
“It’s painful, but we agreed.
“We said, okay, we will not mind if it is just a five percent to 10 percent increase.”
The NATCOMS boss stressed that if the operators really needed funds, they should explore the Nigerian Exchange for options to raise funds.
He said: “The industry operators can opt for an Initial Public Offer for Nigerians to buy shares in their companies as a way of raising funds.
“However, a situation where a whole 50 percent is granted for tariff hike is not cheap and it is a no no from us subscribers.
“I mean, for what we are already going through, no for us, we will challenge this in court.”
The News Agency of Nigeria reports that the Nigerian Communications Commission, the industry’s regulatory body, on Monday released a statement saying it had acceded to the requests of operators to hike tariffs.
This was contained in a statement signed by the Director of Public Affairs of the NCC, Dr. Reuben Muoka.
The NCC said it had approved a maximal increment of 50 percent tariff adjustments in response to prevailing operational costs.
It said that this was less than the 100 percent demanded by some telecom operators.
It said its decision was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 to regulate and approve tariff rates and charges by telecommunications operators.
The NCC said that while recognising the concerns of the public, the decision was made after extensive consultations with key stakeholders across the public and private sectors.
It said: “The NCC has prioritised striking a balance between protecting telecoms consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.
“The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments.
“To this end, the commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers.”
It said that these adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity.
The NCC added that consumers would benefit from better network quality, enhanced customer service, and greater coverage within the country.