The National Association of Telecommunications Subscribers (NATCOMS) wants a maximum of 10 per cent increase in tariffs as against the 50 per cent announced by the Nigerian Communications Commission (NCC).
Recall that the leadership of the body in an interview on Tuesday said it would challenge the federal government’s decision to allow operators increase tariff by 50 per cent in a court of law.
In another round of interview with the News Agency of Nigeria (NAN) in Lagos, the President of NATCOMS, Mr Deolu Ogunbanjo, said the group understood the dilemma faced by the telecommunications industry and had suggested a 5 – 10 per cent marginal increase in tariff.
He said that the approval by the federal government for the telcos to raise tariffs at a maximum of 50 per cent was unacceptable, arguing that it will “affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators.”
“It will increase operational costs,” he added.
According to Mr Ogunbanjo, experts had x-rayed the telecoms sector and said it was in intensive care, meaning it needed to be attended to.
“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it.
“So, that is why we painfully agreed that, look, a moderate or marginal five per cent to 10 per cent increase will be fine.
”You know, we do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s Gross Domestic Product.
“So, we appreciate that. It’s painful, but we granted. We said, okay, we will not mind if it is just five per cent to 10 per cent increase,’’ he said.
The NATCOMS boss stressed that, if the operators really needed funds, they should explore the Nigerian Exchange (NGX) Limited.
“The industry operators can opt for an Initial Public Offer (IPO) for Nigerians to buy shares in their companies as a way of raising funds.
“However, a situation where a whole 50 per cent is granted for tariff hike is not cheap and it is a no! no! from us subscribers.”
He reiterated that the body will take the case to the court.
“I mean, for what we are already going through, no for us, we will challenge this in court,’’ Mr Ogunbanjo insisted.
The NCC announcing the hike on Monday said the increase was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.
“…Over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.
“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,” the announcement statement noted.