SERAP Sues FG, NCC Over Planned 50% Telecom Tariff Increase

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Federal Government and the Nigerian Communications Commission (NCC) over the recent decision to implement a 50% hike in telecommunications tariffs. The legal challenge, lodged at the Federal High Court in Abuja, argues that the tariff increase infringes on fundamental rights to freedom of expression and access to information, as guaranteed by the Nigerian Constitution and international treaties.

The NCC’s tariff adjustment has raised the cost of making calls from N11 to N16.5 per minute, while the price for 1GB of data has increased from N287.5 to N431.25. Additionally, SMS charges have been revised from N4 to N6. This marks the first tariff review in over a decade, with the NCC justifying the increase as necessary to bridge the widening gap between operational costs and revenue while maintaining service quality.

SERAP, however, describes the hike as arbitrary and exploitative. In its filing, the organization is urging the court to declare the increase unconstitutional, unlawful, and unreasonable. It is also seeking an injunction to halt its implementation, emphasizing the impact on millions of Nigerians already grappling with economic hardship.

Deterioration in Telecom Service Quality

Nigeria’s telecommunications sector, once a beacon of growth in Africa, has faced significant setbacks due to insufficient investment in infrastructure and operational capacity. According to industry reports, including analyses from Arbiterz, the sector has struggled to keep pace with the demands of a growing population and increasing data consumption. Operators often cite rising costs of diesel, erratic power supply, and the depreciation of the naira as major impediments to expanding and upgrading their networks.

The lack of sustained investment has resulted in a noticeable decline in the quality of service, with frequent call drops, slow internet speeds, and extended network outages becoming common complaints among subscribers. These issues are exacerbated by regulatory challenges and the absence of a comprehensive strategy to address the funding gap in the sector.

Government’s Defense, Digital Economy, and Industry Outlook

In defense of the tariff adjustment, the Federal Government highlighted the financial strain faced by telecom operators due to rising inflation and escalating operational costs. Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, stated that the increase was essential to ensure the sustainability of the sector amidst current economic pressures.

However, the lack of investment in telecommunications infrastructure threatens Nigeria’s ambition to deepen its digital economy. As a rapidly emerging tech hub in Africa, Nigeria has the potential to drive significant growth through digital services such as fintech, e-commerce, and e-governance. Yet, poor service quality, high operational costs, and outdated infrastructure hinder the sector’s ability to support these aspirations. Analysts caution that without targeted investment and reforms, the country may miss out on critical opportunities to expand its digital economy and compete globally.

Consumer rights advocates argue that while the tariff hike may provide short-term financial relief for operators, it does little to address these systemic challenges. SERAP’s lawsuit has brought these issues into sharper focus, emphasizing the need for a comprehensive strategy to bridge the investment gap and modernize the telecoms sector.

As the case proceeds, its outcome could have far-reaching implications for not only telecom regulation and consumer rights but also Nigeria’s ability to harness its digital potential as a driver of economic development.

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