Subscribers of telecommunications services in Nigeria under the umbrella of the National Association of Telecoms Subscribers (NATCOMS) have raised alarm over the 40 per cent hike in telecom tariffs approved by the Nigerian Communications Commission (NCC).
The sharp increase in the cost of phone calls, SMS, and data bundles raises urgent concerns about affordability and access to essential communication services for millions across the country.
NCC recently approved a 40 per cent increase in telecom service tariffs, set to take effect soon. This hike is set to impact the cost of phone calls, SMS, and data bundles nationwide.
The new tariffs approved by the NCC include calls from ₦11 to ₦15.40 per minute (a 40% increase), SMS (₦4 to ₦5.60; a 40% increase), and data (a 1GB bundle will rise from ₦1,000 to at least ₦1,400). These represent additional digital costs consumers will have to square up with at the beginning of a new year, among other harsh economic realities of Nigeria today.
Telecom operators argue that these increases are necessary to cover rising operational costs. For millions of Nigerians, these hikes may further strain already tight household budgets.
However, NATCOMS, in a communique issued after an emergency meeting in Lagos recently considered “The decision of the NCC very insensitive and not in the interest of Telecoms Services Consumers.”
In the communique jointly signed by NATCOMS’ President, Chief Deolu Ogunbanjo and the National Secretary, Barrister Bayo Omotubora respectively said the new increment would be one additional burden too many for Nigerian telecom users.
“The unrelenting rise in prices of goods and services in the country has made life extremely difficult for the generality of consumers of Telecom Services. The new increment is therefore one additional burden too many.
“This, undoubtedly, is against public interest contrary to the false narrative of NCC that described the recent adjustments as pro-public interest”, NATCOMS said.
It said the increment is an attempt to price telecom services out of the reach of the generality of the citizens of the country.
It added, “Telecom Services are taxable services under the Value Added Tax Act. The Act was amended in 2019 by the Finance Act of that year to raise the tax rate from 5% to 7.5% which was a 50% increment and the increment has been borne by the consumers of rateable Telecom Services. That increment brought about untold hardship to our members, many of whom have been forced to cut back on their telecommunication requirements.
“As if that was not bad enough, the federal government got the National Assembly to enact the Finance Act of 2020. Section 37 of the Act amended Section 21 of the Customs, Excise Tariff etc. (Consolidation) Act by imposing an excise duty charge on Telecommunication Services. The then president, Muhammadu Buhari by an order prescribed 5% as the rate of the excise duty charge, chargeable for Telecommunication Services.”
The subscribers association said it is 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 levels/tiers of government and the dollarisation of the costs of their equipment.
It therefore called on the NCC to nullify the approval given for the tariff hike and advise the operators to embrace other options of generating funds for their operations.