January 4, 2025
  • January 4, 2025
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January 2, 2025

Telcos propose 100% tariff hike amid backlashes

By Upfrontdigital News 0 13 Views

 

By Favour Unukaso

 TELECOMMUNICATIONS operators said they made a proposal of 100 per cent tariff hike to the regulator, the Nigerian Communications Commission (NCC) in their plea for hike in tariffs on services offered including voice, data and digital.

   MTN Chief Executive Officer, Karl Toriola, disclosed this on Thursday, when he featured on AriseTv to talk about some burning telecoms industry issues.

   Toriola, who also doubted the approval of the 100 per cent tariff hike by the regulator, said the campaigns for increases have not been about profitability, but sustainability of the sector. He stressed that the telecoms industry, which has remained the pillar of support for the economy, must be sustained so that it doesn’t collapse.

MTNN CEO

    “This is not about profitability but sustainability of the sector. I think the Federal Government was very supportive in 2024 with significant structural changes to support the industry, one of them was the Critical National Infrastructure (CNI) bill, which protects telecoms infrastructure as critical and gets all the security agencies behind it. The other is addressing the indebtedness of the entire sector, and we have been put to task on QoS obligations, and we shall put to task on that even more in 2025.

     “Sustainability is at the heart of what is driving the economy. If you don’t have a sustainable industry, the economy and well-being of the people will be affected. Yes, everyone in Nigeria has gone through difficult times in the last two years due to economic challenges: inflation, devaluation among others. For us, we are not talking about profitability, but sustainability. Profitability will come on a long term basis.

    “We have put forward a request of approximately 100 per cent tariff increase to the regulators, but I doubt if that will be approved because they are very sensitive to the current economic situation in the country. But we are hopeful that the realities are stirring us in the face and the right decisions will be made for the sustainability of the industry.”

    Checks showed that the cost of a phone call is still within N6.40 and N50, while charges for SMS are pegged at N4 and the average price of a 1GB bundle hovers around ₦1,000, but operators have asked for 100 per cent.

    The calls for tariff increase by the operators have faced brick walls and intense backlashes.

    For instance, the National Association of Telecoms Subscribers rejected the proposed increase in telecommunication tariffs, describing the plan as “insensitive” and a further burden on consumers already grappling with economic hardship.

Ogunbajo, NATCOMS President

    According to a communique, signed by National President Chief Adeolu Ogunbanjo and National Secretary Barrister Bayo Omotubora, NATCOMS criticised the tariff increase.

     NATCOMS argued that these increases would exacerbate financial strain and reduce access to vital communication services for many Nigerians.

    The association also raised concerns about the cumulative impact of taxes on telecoms services. NATCOMS highlighted the excise duty introduced by the 2020 Finance Act, which was suspended following public outcry and is currently the subject of a legal challenge.

      “The additional tax burden has already brought untold hardship to our members, many of whom have had to cut back on their telecommunication needs,” NATCOMS noted. “The proposed tariff hike would only worsen the situation.”

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