Nigerians are challenging the 50% hike in telecom tariffs, with telecom subscribers and advocacy groups escalating the matter to the courts after their efforts to engage the Nigerian Communications Commission (NCC) yielded no results....Read Full Article >>➤
The National Association of Telecommunications Subscribers (NATCOMS) announced its intention to take legal action on Wednesday, after the NCC failed to address its request to reduce the tariff increase to a more manageable 10%.
The tariff hike, the first in over a decade, was announced last Monday, and has sparked widespread concern, particularly from groups like the Socio-Economic Rights and Accountability Project (SERAP) and the Nigeria Labour Congress (NLC). These groups argue that the hike will place an additional burden on low-income households and small businesses already grappling with inflation.
NATCOMS, which represents over 157 million subscribers, sent a letter to the NCC last Friday requesting a reconsideration of the hike. The NCC did not respond by the deadline, prompting the association to move forward with legal action. NATCOMS President, Adeolu Ogunbanjo, said, “We gave them until the end of the day to respond, but since we have received no reply, we are moving forward with the court process.”
In addition to NATCOMS, SERAP filed a lawsuit against the federal government, calling the tariff hike “unconstitutional and unlawful.” The lawsuit, filed in Abuja’s Federal High Court, challenges whether the NCC’s approval of the 50% hike infringes on Nigerians’ constitutional rights to free expression and access to information.
Telecom operators justify the tariff hike, which is set to take effect in February, as necessary to maintain their operations and fund infrastructure improvements. Several major players in the telecom industry have plans to invest in better coverage and more reliable services, which they hope will justify the price increase.
However, experts note that the tariff increase alone may not address the sector’s deeper financial challenges. Telecom companies are still grappling with issues such as fluctuating exchange rates, which further strain their financial models.
Support for the hike has come from several government agencies and industry stakeholders. Finance Minister Wale Edun and the Lagos Chamber of Commerce and Industry argue that the hike is necessary to address inflation and rising operational costs. They emphasize that telecom operators need to improve their services and ensure that the increased tariffs lead to better customer experiences.
MTN and Airtel Nigeria have defended the tariff hike, saying it will help them make critical investments in network infrastructure and expand coverage. Both companies stress their commitment to contributing to Nigeria’s digital transformation and ensuring long-term sustainability in the telecom sector.
While the tariff hike remains controversial, telecom operators are hopeful that the adjustments will enable them to continue providing reliable services and contribute to Nigeria’s economic growth. ...Read Full Article >>➤
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