NATCOMS Says 50 Percent Tariff Hike Excessive, Opts for 10

Telecom subscribers under the aegis of National Association of Telecom Subscribers in Nigeria (NATCOMS) said it may head to court to challenge the 50 percent tariff hike approved for the telecom operators by the Nigerian Communications Commission (NCC).

NATCOMS in a letter signed by Deolu Ogunbanjo, national president, and Bayo Omotubora, legal counsel, said that the body, seeking reduction of the hike to 10 percent and is hoping that the commission will respond favourably, else it will file a suit against the commission.

The letter read in part: “The Nigerian Communications Commission’s (NCC) recent approval of 50% hike in tariff for telecommunications services is tantamount to throwing the generality of Nigerians, who are the Consumers of the telecommunications services under the bus for a grinding crush over, and we dare say, it is an overkill.

“It is quite regrettable that the Commission seems to have abdicated its primary responsibility of protecting telecoms consumers from the unabridged quest of the telecoms operators to maximize profits at all costs.

“The Operators have various options to fall back to, generate capital to retool their operations, aggressive debtors chase, intra-industry debts, without casting the unbearable burden of 50% tariff hike on the hapless Telecoms Subscribers.

“There was an era in the telecommunications industry when mega profits in the region of billions were reaped by the Operators, why should they now be allowed to burden the consumers with 50% tariff hike. They can as well plough back those billions to improve service delivery.

“There is also the option of funding their businesses with loans either within Nigeria or from other countries where interest rates are predictable, after all, they are in business.

“The Operators should be advised to explore other options and spare their over-burdened customers this new yoke. Every Ministry, Department and Agency of the Government seems to be in a race to over-burden consumers of goods and services by devising various ways to slam the citizens with multiple levies.

“If it is not petroleum price hike, it will be electricity band hike, international passport price hike, custom duty hike, all kinds of disguised taxes coming in torrents against the citizens. The telecoms tariff-hike is now an addition.

“The implications of the 50% hike are many and damaging. Small businesses that depend on telecoms services will be out of business as fast as today. Our children in schools who depend on data to do a number of things will now be denied the opportunities and subtly disrupt their academic programmes. The senior citizens who depend on telecom services to keep in touch with their children will now have to fall back to analogue era. Big businesses that run multiple services on data, will simply pass the costs to their customers who are still the consumers. The list is endless.

“In the premises of the foregoing, we are appealing to the NCC not to implement the 50% tariff hike, but, advise the Operators to look elsewhere for funds, after all, all of them are private businesses. Even where tariff hike is justified, a 10% hike would have been a balancing measure, whilst exploring other funds raising measures as aforementioned”.