The National Association of Telecoms Subscribers (NATCOMS) has firmly rejected the proposed hike in telecom tariffs, urging the Nigerian Communications Commission (NCC) to withdraw any approval for the increase. The association emphasised the need to protect subscribers from undue financial burdens.
In a communiqué issued after an emergency meeting of its National Executive Council, NATCOMS expressed its concerns over the planned tariff increase. Signed by its National President, Adeolu Ogunbanjo, and National Secretary, Bayo Omotubora, the communiqué called on operators to consider alternative funding strategies instead of raising costs.
The association warned that the proposed hike, which would increase telecom service costs by 40% and impose a 12.5% tax rate, could render services unaffordable for two-thirds of subscribers, effectively excluding a significant portion of the population.
“Under the new tariff regime, a voice call will rise from N11.00 to N15.40 per minute, and short message services will jump from N4.00 to N5.60.
“One GB data bundle will move from N1,000 to N1,400. This represents additional digital costs consumers will have to face at the beginning of a new year, among other harsh economic realities of Nigeria today.
“This is a complete negation of the statutory duty of NCC to protect the interests of telecom service consumers.
“We are aware of the arguments of the telecom operators that there has not been any tariff increment in a decade, multiple levies slammed on them by different tiers of government, and the dollarisation costs of their equipment.
“But truth be told, there are many other avenues through which the operators can generate funds to meet their rising operational costs without putting an unbearable burden on their consumers.
“This association considers the decision of the NCC as very insensitive and not in the interest of telecom services consumers.
“The unrelenting rise in prices of goods and services in the country has made life extremely difficult for the generality of citizens who are the consumers of telecom services.
“The new increment is therefore one additional burden too many.”
NATCOMS pointed out that telecommunication services fall under taxable services as defined by the Value Added Tax (VAT) Act, which was amended by the Finance Act in 2019 to increase the VAT rate from 5% to 7.5%
“That increment brought about untold hardship to our members, many of whom have been forced to cut back on their telecommunication requirements.”
The association called on the NCC to rethink its decision, emphasising the need to prioritise the welfare of the general populace.
