Telecom sector grapples with controversy over proposed 50% tariff hike

 

Telecommunications operators in Nigeria are bracing for regulatory guidance from the Nigerian Communications Commission (NCC) to clarify the framework for implementing the contentious 50 per cent tariff increase. This decision, announced during a virtual meeting with stakeholders, has sparked a mix of anticipation and backlash across the sector.

The NCC is expected to release a ‘determination document’ a key regulatory tool that will set out the conditions, frameworks, and methodologies for executing the tariff adjustment. Industry insiders confirm that the implementation is scheduled to commence in February, with price adjustments falling within the NCC-approved tariff bands of N6.40 to N50 established by the 2013 Cost Study.

The President of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere, highlighted the significance of the document, emphasizing its role in ensuring compliance and fairness in the process. “Unlike the price of tomatoes in a market, which can be increased or reduced without regulation, telecommunications tariffs are strictly regulated.

“The determination document is the final step in this process, as it provides the necessary framework and guidelines for implementation,” he explained.

Despite these regulatory assurances, the proposed increase has ignited debate within the industry and among consumers. Operators argue that the hike is necessary to counteract inflation, exchange rate fluctuations, and escalating operational costs that have gone unchecked for over a decade. According to the Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, this move aligns with established regulatory procedures.

“We don’t operate on one price list. There are different price bands there is the lower and upper band. These are regulations approved by the NCC.

“Operators must approach the regulator based on their requests, and I believe that is what has been happening since the announcement was made. This is just the normal way we proceed when asking for a review of pricing,” Adebayo stated.

However, critics remain unconvinced. The National Association of Telecoms Subscribers has demanded a reduction of the proposed increase from 50 per cent to 10 per cent, issuing a January 29 ultimatum to the NCC. Subscribers have also threatened legal action should their demands go unmet.

However, President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria, Sina Bilesanmi, criticized the Nigerian Labour Congress (NLC) for announcing a protest against the tariff adjustment, urging the union to focus on its core mandate of protecting workers’ welfare.

While the NCC defends its decision as a step toward sustaining the telecom sector a critical contributor to Nigeria’s economy, accounting for 14 per cent of GDP stakeholders are calling for more comprehensive measures to address systemic issues in the industry. These include the rising cost of doing business, network infrastructure deficits, and the need for sustainable long-term solutions.

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