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50% telecoms tariff hike: Nigerians to drag FG to court

The Nigerian government has approved a 50% increase in telecom tariffs, sparking widespread backlash from citizens and businesses. Many Nigerians, led by the National Association of Telecoms Subscribers (NATCOMS), are planning to challenge the decision in court.

The Nigerian Communications Commission (NCC) recently approved the increase, which raises call costs from ₦11 to ₦16.5 per minute, SMS costs from ₦4 to ₦6, and data charges to ₦431.25 per gigabyte. This is the first tariff adjustment since 2013 and comes after telecom operators lobbied for higher rates due to rising operational costs.

While the Minister of Communications and Digital Economy, Bosun Tijani, initially suggested a smaller increase of 30%, the approved hike went up to 50%, exceeding what subscribers had agreed upon.

NATCOMS President Adeolu Ogunbanjo has criticized the decision, stating that Nigerians are already burdened by high costs of fuel, transportation, and food. According to him, a smaller tariff increase of 5–10% would have been more acceptable. He also expressed concerns that the hike would have a ripple effect on businesses, pushing up costs across various sectors.

Point of Sale (POS) operators, who rely heavily on telecom services, may also increase their fees. The Association of Mobile Money & Bank Agents in Nigeria (AMMBAN) noted that while some operators may try to absorb the costs, many might be forced to pass them on to customers.

Ogungbayi Ganiyu, AMMBAN’s spokesperson, acknowledged the potential challenges the hike will bring, stating, “The telecom tariff increase will affect our operations. While some members may bear the cost, others might need to raise charges.”

The tariff hike, set to take effect in February 2025, could worsen economic hardship for millions of Nigerians. Ogunbanjo warned that the increase will likely raise the cost of goods and services, deepening poverty in the country.

Telecom subscribers are preparing to take the federal government to court to challenge the hike. Ogunbanjo emphasized that the legal action aims to protect Nigerians from being further impoverished by policies that favor corporations over citizens.

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