Telcos claim 50% tariff hike not sufficient as lawyer carpets NCC
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- Telcos claim 50% tariff hike not sufficient as lawyer carpets NCC
By Upfrontdigital News
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By Favour Unukaso
DESPITE mounting opposition against the Federal Government approved 50 per cent telephony services tariff hike, telecommunications companies have said the percentage approved is not sufficient enough to help in reducing the challenges the sector is facing.
The operators under the aegis of the Association of Telecommunications Companies of Nigeria (ATCON) stressed that though the 50 per cent, did not fully address the operators’ request for a 100 per cent increase, however, the decision reflects the NCC’s acknowledgement of the significant operational challenges facing the telecoms industry and its commitment to sustaining quality service delivery for Nigerians.
ATCON, in a statement signed by the President, Tony Izuagbe Emoekpere, commended the NCC’s consultative and collaborative approach in addressing these industry issues.
ATCON noted that its members are eagerly awaiting the official Determination document from the NCC, which is expected to provide detailed guidelines on the implementation of the new tariffs in line with the Nigerian Communications Act 2003.
According to the body, this document will be instrumental in guiding operators and stakeholders on the implementation of the adjustments and the accompanying expectations.
“While the approved tariff adjustment, capped at a maximum of 50 per cent, does not fully address the operators’ request for a 100 per cent increase, we understand that this is a step towards bridging the gap between operational costs and revenues.
ATCON President
“This adjustment will enable operators to continue investing in infrastructure, expand coverage, and improve service quality for the benefit of all Nigerians,” it stated.
ATCON reassured Nigerians that the tariff adjustments would ultimately benefit consumers, as operators are committed to reinvesting the additional revenue into enhancing network quality, expanding digital access, and delivering a better customer experience.
The association stressed that these investments would translate into improved connectivity, wider coverage, and innovative solutions designed to meet the evolving needs of Nigerians.
It noted that for over a decade, telecom tariffs in Nigeria have remained static despite escalating costs driven by inflation, exchange rate volatility, and the substantial investments required to meet growing consumer demand.
ATCON highlighted that these challenges have put immense financial strain on operators, threatening the sustainability of the sector, which serves as a cornerstone of Nigeria’s digital economy.
“The telecommunications sector remains dedicated to contributing to national development and economic growth by fostering an environment of sustained investment,” the statement added.
While expressing gratitude to the NCC for balancing the interests of operators and consumers, ATCON urged the Commission to maintain open engagement with telecoms operators to address ongoing challenges that hinder operational efficiency.
MEANWHILE, a Nigerian lawyer, activist and social entrepreneur, Frank Tietie, has carpeted the Minister of Innovation, Communications and Digital Economy, Dr Bosun Tijani, the NCC and the Federal Competition & Consumer Protection Commission Lagos (FCCPC) for allowing the 50 per cent hike.
Tietie on a television programme, yesterday, said the cost of Federal Government’s incompetence is always passed to the populace, which shouldn’t be.
TieTie
Referencing NCA Act, Section 57 and 58, which require the NCC to conduct a public enquiry and sensitization before allowing any price hike, the lawyer said the minister should not justify the operators on the basis of inflation, naira devaluation, rising energy cost, among others.
Tietie said operators have long been told to invest in renewable energy, among other solutions to bridge the rising energy cost.
“I don’t know why the Minister is defending the telcos? These operators make lots of money from sending unsolicited adverts, among others to subscribers. Must we always blame inflation for everything? The NCC failed abysmally on consumer protection, there should have been a public enquiry as enshrined in Section 57 and 58 of NCA Act 2003, but nothing was done,” he stated.
While also taken a swipe at the FCCPC for not acting accordingly to protect subscribers, Tietie said Nigerians consumers are now helpless, stressing that the challenge faced by operator shouldn’t always be about price increase.