Subscribers lament additional tax burden in 50% tariff hike amid growing hardship
By Jeph Ajobaju, Chief Copy Editor
Mobile telephone subscribers are reeling under having to pay more for data, voice calls, and short message service (SMS), also known as text messages, following the 50 per cent hike in tariffs the Nigerian Communications Commission (NCC) approved for telecommunication companies on Monday.
The approval, half of what Mobile Network Operators (MNOs) requested, was announced after a virtual meeting of Industry Consumer Advisory Forum (IACF), an advisory body of the NCC.
The meeting was attended by Communication, Innovation and Digital Economy Minister Bosun Tijani and lasted from 10.30am to 12.25pm.
ICAF provides recommendations on issues affecting ICT consumers.
Telephone subscribers kicked against the tariff hike, describing it as an overkill, which was unleashed following years of persistent push by MNOs and other stakeholders for Abuja to consider the effects of inflation and approve a 100 per cent rise on the cost of data, voice calls and text messages.
The MNOs argued that the withdrawal of petrol subsidy, the devaluation of the naira, and other market realities have precipitated an increase in the cost of services in the industry.
NCC explained that it granted the approval “pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.
“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”
But the Association of Cable Tvs, Internet and Telecom Subscribers of Nigeria (ATCIS-Nigeria) and the National Association of Telecom Subscribers of Nigeria (NATCOMS) rejected the hike, describing it as insensitive to the plight of struggling citizens whose fortunes have declined because soaring inflation and impact of fuel subsidy removal.
They blamed Tijani for approving the 50 per cent hike, and NATCOMS has resolved to file a fresh suit in court to challenge the “outrageous” increase.
Sina Bilesanmi (ATCIS-Nigeria President)
Bilesanmi, who confirmed he attended the ICAF meeting, rejected the hike, seeing it as punitive at a time the average Nigerian is struggling to cope with the high prices of all goods and services.
He said the original plan was to effect the tariff hike on January 5 were it not for the vigilance of ATCIS-Nigeria, yet “we are shocked by the high percentage of the increase approved by the Minister. We reject it because we are sure it will hurt our members.”
Deolu Ogunbanjo (NATCOMS President)
Ogunbanjo described the price rise as provocative and smacks of insensitivity to the yearnings of citizens.
He said the expectation was for a marginal increase of between five and 10 per cent, insisting that 50 per cent is an overkill.
Ogunbanjo admitted that there was need for a marginal hike going by what the MNOs and other experts were saying about the state of health of the industry, “But not the magnitude approved by the government.
He added: “Our members whose shops are online will suffer a sharp increase in their cost of operation. Many may close shops. It is really sad.
“We are already in court but we will file a fresh action in court challenging this disproportional hike.”
Tony Emoekpere (Association of Telecom Companies of Nigeria (ATCON) President)
“The main challenge is that this issue has been left for too long. That is why a 100 per cent increase appears to be a lot. Considering the prevailing situation, it is not as much as it looks,” he wrote in a WhatsApp conversation.”
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