Wednesday, January 22, 2025

FG defends tariff hike amid legal threats from SERAP, subscribers


 The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has defended the recent 50 per cent tariff increase in telecom services, citing economic pressures and rising operational costs. Speaking before lawmakers on Tuesday to defend his ministry’s budget, Tijani explained that inflation and the high cost of imported goods played a significant role in the decision.


According to the minister, telecommunications infrastructure investments have historically been left to private companies, which prioritize areas with strong economic activity. He noted that these companies rely on data analytics, such as night-time satellite imagery, to determine investment locations, meaning they focus on areas with visible economic activity.


The tariff hike has sparked significant opposition, with advocacy groups and subscribers threatening legal action. The National Association of Telecoms Subscribers (NATCOMS) and the Socio-Economic Rights and Accountability Project (SERAP) have both condemned the increase. NATCOMS President, Adeolu Ogunbanjo, stated that the association would engage with the Nigerian Communications Commission (NCC) this week to push for a reduction to 10 per cent. If discussions fail, they plan to take legal action next week.


SERAP also issued a 48-hour ultimatum, demanding an immediate reversal of the increase, calling it unlawful. In a statement on its X account, the organization warned, “The Tinubu administration and telcos must immediately reverse the unlawful increase in calls and data costs. We’ll see in court if the 50 per cent tariff hike is not reversed within 48 hours.”


Many Nigerians have expressed frustration over the rising cost of essential communication services, arguing that the tariff adjustment disproportionately impacts low-income earners who rely on affordable call and data services.


The NCC, which approved the tariff adjustment on Monday, stated that the increase was necessary to address the growing financial strain on telecom operators. While some service providers initially proposed a 100 per cent increase, the commission capped the adjustment at 50 per cent.


In a statement signed by the Director of Public Affairs, Reuben Muoka, the NCC emphasized the need to balance consumer protection with industry sustainability. The commission acknowledged the financial difficulties faced by Nigerian households but stressed that the adjustment was essential for maintaining service quality and supporting local vendors and suppliers in the telecom ecosystem.


“The NCC has prioritized striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, including the thousands of Indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem,” the statement read.


The commission assured consumers that telecom operators would be required to implement the adjustments transparently and fairly, while also keeping future price reviews under strict regulatory oversight.

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