- Price surge sparks consumer backlash, NATCOMS threatens legal action
- House cites economic hardship, urges NCC, Minister to suspend tariffs
Nigeria’s largest telecom operator, MTN, has commenced the gradual implementation of a 50 per cent tariff increase approved by the Nigerian Communications Commission in January.
The adjustment, which is evident in the updated prices of data plans, leaves call and SMS rates unaffected for the time being.
A senior executive from MTN, who doesn’t want to be mentioned, confirmed the development on Tuesday.
“Yes, we’ve started updating our price lists.
“However, this process is gradual, and we haven’t completed it for all products yet”, the source said.
The price adjustments primarily affect several data plans.
For instance, checks on Tuesday revealed that the 1.5GB monthly plan, previously priced at N1, 000, has been replaced by a 1.8GB plan now costing N1, 500.
The 15GB plan has increased from N4, 500 to N6, 500, while the 20GB plan now costs N7, 500, up from N5, 500.
Larger data bundles have seen even steeper increases.
The 1.5 terabyte 90-day plan has risen from N150, 000 to N240, 000, and the 600GB 90-day plan is now priced at N120, 000, up from N75, 000, according to the updated list.
However, the National Association of Telecommunications Subscribers has voiced its opposition, threatening legal action against the approved tariff increase.
NATCOMS argued that the hike be reversed to 10 per cent.
The NCC announced the tariff hike on January 20, citing rising operational costs and the need to ensure the long-term sustainability of the telecommunications sector.
The Commission, through its Director of Public Affairs, Reuben Muoka, underscored that the decision aligns with its regulatory mandate under Section 108 of the Nigerian Communications Act, 2003.
House urges NCC, Minister to suspend tariffs
Meanwhile, the House of Representatives on Tuesday directed the NCC to suspend the recent 50 per cent hike in telecommunication tariffs.
The lawmakers cited the economic hardship being experienced by Nigerians owing largely to the removal of fuel subsidies.
The decision of the House was a sequel to the adoption of a motion of urgent public importance sponsored by a member of the People’s Democratic Party from Bayelsa State, Oboku Oforji during Tuesday’s plenary.
Titled, ‘Need for the Nigerian Communications Commission not to approve the impending hike in the telecommunications tariffs,” Oforji argued that though the telecommunications companies premised the hike on rising operational costs and the need for better service delivery; he noted that Nigerians were already going through a lot, just to put food on the table.
He said, “The House is aware that telecommunications companies have been advocating for the hike for the last eleven years. The Association of Licensed Telecom Operators of Nigeria and the Association of Telecommunication Companies of Nigeria argued that the telcos need cost-reflective tariffs in the face of adverse economic realities like record inflation of 34.6 per cent in November 2024 and losses resulting from foreign exchange fluctuations.
Oforji reminded his colleagues that “The National Association of Telecoms Subscribers has rejected the proposed increase in tariffs, describing it as insensitive and a further burden on consumers already grappling with economic hardship, and poor network service delivery.
“The telecommunications companies must improve on their service delivery (poor network), which Nigerians have been yearning for years, before embarking on the increase in their tariffs.
“The far-reaching effects of these price hikes will deepen financial struggles for the average Nigerian, threaten the country’s vision of leveraging technology to drive economic revival, exacerbate poverty and widen existing inequalities, hitting lower-income families the hardest.”
He added, “Affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e-governance, stressing that “Informal sector workers who depend on affordable mobile data to access gig work opportunities may find it harder to stay connected.”
He further argued that small businesses “which rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burden, noting that “It is estimated that a 10 per cent increase in telecommunications costs would reduce small business profitability up to 7 per cent, potentially leading to the closure of businesses.”
In his contribution, a member of the All Progressives Grand Alliance, Dominic Okafor, justified the increment, noting that without the hike in tariff, service providers might find it difficult to deliver consumer satisfaction to millions of Nigerians.
“For these telecom service providers to improve their performances, they need to make money to make further investment in infrastructure but this increment should not go as high as 100 per cent,” he said.
Okafor’s position was however countered by a federal lawmaker from Edo State, Billy Osawaru who called on the service providers to first improve the quality of their services before coming up with a hike in tariff.
“Why is it that when things go wrong in this country, the poor people must suffer? First, it was the electricity tariff, now it is the turn of the telecom companies. Nigerians must enjoy these services.
“In the developed world, people are not used to carrying two mobile phones but this is the practice here. The thinking is if there is no service in one, you might be lucky with the other one. I believe that this increase in tariff should wait until services improve,” he said.
Following the adoption of the motion, the House urged the Minister of Communications, Innovation and Digital Economy and the Nigerian Communications Commissions to suspend the impending hike in telecommunications tariffs until their service improved.
