Subscribers to sue telcos over 100% tariff hike proposal

Subscribers have said they are preparing to sue telecommunications companies over a proposed tariff hike that could double service costs nationwide.

Telecom operators have defended the increase as essential to offset rising operational expenses, but the National Association of Telecommunications Subscribers has strongly opposed it.

NATCOMS President Adeolu Ogunbanjo said the group plans to file a class-action lawsuit if the telecom operators proceed with the hike without first exploring alternative revenue-generating methods.

Ogunbanjo criticised the proposed 100 per cent tariff hike as excessive and unsustainable, urging the Nigerian Communications Commission to deny the operators’ request.

“Initially, we were looking at a marginal increase of five per cent to 10 per cent. Then the NCC considered a 40 per cent increase. Now, telcos are proposing 100 per cent, and we are saying no,” Ogunbanjo told Saturday PUNCH.

The proposed tariff hike would raise the cost of a voice call from N11.00 to N22.00 per minute, an SMS from N4.00 to N8.00 per message, and a 1GB data bundle from N1,000 to N2,000.

The NCC is currently reviewing the proposal and has not yet made a final decision.

Ogunbanjo warned that NATCOMS was ready to challenge any approval in court, stating, “This is a sector of national interest, and we will not hesitate to seek legal redress to protect subscribers’ rights.”

The NATCOMS president suggested that telecom operators explore the capital market as an alternative to raising tariffs.

“They can go to the Nigerian Stock Exchange to raise funds. Nigerians will buy their shares, and I am confident it will be oversubscribed. MTN has already done this successfully; other operators like Glo and Airtel should follow suit,” he added.

Ogunbanjo acknowledged the financial pressures faced by telcos, including inflation and rising operational costs. However, he emphasised that subscribers should not bear the brunt of these challenges without first exploring other viable funding options.

“If the operators cannot meet their financial needs after raising funds through the stock exchange, they can return to the table for discussions,” he said.

The consumer group argued that the proposed hike would disproportionately affect low-income subscribers and could hinder access to essential communication services.

Earlier, MTN Nigeria’s Chief Executive Officer, Karl Toriola, provided details about the tariff proposal during an interview on Arise TV.

Toriola explained that telcos had formally submitted requests to the NCC for the 100 per cent tariff hike but expressed uncertainty about its approval.

“We’ve put forward requests of approximately 100 per cent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola said.

He defended the proposed hike as essential for the sustainability of the telecom sector, which has been grappling with rising operational costs.

Despite the uncertainty, Toriola expressed confidence that the NCC would make a balanced decision that considers the realities of both the sector and subscribers.

For the first time in over a decade, operators have consistently called for an adjustment this year, citing rising operational costs driven by inflation and macroeconomic pressures.

The Chairman of the Association of Telecommunications Companies of Nigeria, in an interview with Saturday PUNCH, raised alarms over the potential consequences of delaying a tariff review.

The telecom executive said failure to implement timely changes could lead to widespread service disruptions and declining quality of service.

“There should be a timeline, and that means everything should happen in the first quarter of 2025,” said Emoekpere.