House Of Reps Demand Suspension Of Telecom Tariff Hike

The House of Representatives on Tuesday directed the Minister of Communications, Innovation, and Digital Economy, as well as the Nigerian Communications Commission (NCC), to suspend the planned increase in telecommunications tariffs until service quality improves.

Naija News reports that the decision followed a motion of urgent public importance sponsored by Oboji Oforji (PDP, Bayelsa) on the need to halt the proposed tariff hike by telecom companies.

Leading the debate, Oforji recalled the announcement by the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, regarding an impending increase in telecommunications tariffs.

“According to the Minister, consultations are ongoing as some of these companies have agitated to increase tariffs to as high as 100 percent. He, however, said it would not be a 100 percent increase and that the Nigerian Communications Commission would approve the new tariffs and announce them in due course,” he said.

Arguments For The Tariff Increase

Oforji noted that telecom operators have been advocating for a tariff hike for over eleven years, as stated by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON).

“They argued that the telcos need cost-reflective tariffs in the face of adverse economic reality like record inflation of 34.6 percent in November 2024 and losses resulting from foreign exchange fluctuations,” he explained.

However, the National Association of Telecoms Subscribers rejected the proposed increase, describing it as insensitive and an additional burden on consumers already grappling with economic hardship and poor service delivery.

Oforji emphasized that before any price hike, telecommunications companies must improve their service delivery, which has been a persistent complaint among Nigerians.

“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 stated.

He further highlighted the necessity of affordable connectivity in critical sectors such as digital banking, education, healthcare, agriculture, and e-governance.

“Informal sector workers who depend on affordable mobile data to access gig work opportunities may find it harder to stay connected,” he added.

Concerns For Small Businesses

Oforji warned that a 10 percent increase in telecommunications costs could reduce small business profitability by up to 7 percent, potentially leading to business closures.

“Small businesses, which rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burdens,” he stressed.

Supporting the motion, Billy Osawaru (APC, Edo) argued that Nigerians should not continue to suffer whenever economic adjustments are made.

“In the developed world, people pay for the services they enjoy, and such services must be top-notch. The services rendered by these telecom companies are ineffective to the extent that Nigerians have to carry two phones everywhere they go,” he said.

“We are not saying tariffs should not be increased, but that should not be now. They should first show us why they want to increase their tariff. So, this planned increase should wait,” Osawaru added.

However, Dominic Okafor (APGA, Anambra) took a different stance, stating that for telecom operators to offer effective services, they must be allowed to adjust tariffs in response to rising business costs.