Nigerians have vowed to take legal action against the Federal Government over the approval of a 50% increase in telecom tariffs for calls, data, and other services. This decision has sparked fears of a ripple effect, with Point of Sale (POS) operators hinting at the possibility of raising their service charges.
In separate interviews with DAILY POST on Monday, January 21, 2025, the President of the National Association of Telecoms Subscribers (NATCOMS), Adeolu Ogunbanjo, and the National Spokesperson for the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), Ogungbayi Ganiyu, expressed their strong opposition to the tariff hike.
The Nigerian Communications Commission (NCC) had approved the hike after discussions with mobile network operators (MNOs), who had initially requested a 100% increase. The approval, which follows a similar increase in 2013, means Nigerians will face higher costs for calls, SMS, and data starting in February 2025. For instance, call rates will rise from N11 to N16.5 per minute, SMS will increase from N4 to N6, and the cost of 1GB of data will rise to N431.25.
Ogunbanjo, reacting to the tariff hike, stressed that telecom subscribers had only agreed to a 5% to 10% increase, not the 50% announced by the NCC. He stated that the hike would worsen the already difficult economic situation for Nigerians, who are also grappling with rising fuel, transportation, and food costs.
“It is unfortunate that the Minister of Communications and Digital Economy, Bosun Tijani, is the one leading the telecom service increase. He should not be the one to impoverish Nigerians,” Ogunbanjo said. “We are going to court to challenge the decision by the federal government to approve a 50% tariff hike. We have given them options.”
The tariff hike is expected to have a ripple effect across industries, with businesses likely to pass on the increased costs to consumers. Ogunbanjo warned that this would further deepen the financial struggles faced by Nigerians.
Meanwhile, Ganiyu from AMMBAN expressed concern that the telecom tariff hike would heavily impact POS operators, whose services rely on telecom data. While some operators may absorb the additional costs, others might be forced to raise their service fees.
“The telecom tariff hike will impact the operations of our members. I am afraid this may also have a multiplier effect on service charges,” Ganiyu explained. “We have not sat down and looked at the latest tariff hike, but it may affect our operations.”
As the new tariffs are set to take effect in February 2025, the ongoing legal challenge and the concerns raised by business owners signal a growing dissatisfaction with the increase and its potential effects on Nigeria’s already strained economy.
