Telecom subscribers under the auspices of National Association of Telecoms Subscribers (NATCOMS) have rejected the 50 per cent tariff hike and also disclosed plans to sue the Nigerian Communications Commission (NCC).
The new tariff regime was approved by the NCC on Monday, following a request by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON).
Chief executive officer (CEO) of MTN Nigeria, Karl Toriola, had said the telcos wanted a 100 per cent increase in tariffs.
However, in approving the request, the NCC capped the tariff increase at 50 per cent.
Reacting to the development, Deolu Ogunbanjo, president of NATCOMS, said the NCC did not carry subscribers along in the arrangement.
Ogunbanjo said NATCOMS understood the dilemma faced by the telecoms industry and had suggested a 5 per cent to 10 percent marginal increase in tariff.
He said the federal government’s approved 50 per cent tariff hike is unacceptable.
“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators. It will increase operational costs,” Ogunbanjo said.
According to him, economic experts had x-rayed the telecoms sector and said it was in intensive care, meaning that it needed to be attended to.
“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 per cent to 10 per cent 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 (GDP),” he stated.
Ogunbanjo said if the operators need funds, they should explore the Nigerian exchange for options for financing and opt for Initial Public Offers (IPO) for Nigerians to buy shares in their companies as a way of raising funds.
“However, a situation where a whole 50 per cent 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.”
