Due to the federal government’s acceptance of a 50% hike in calls, data, and other telecommunications prices, Nigerians have promised to take the government to court.
Point of Sale Operators have alluded to plans to raise their service fees in an instant multiplication impact.
In separate, exclusive interviews on Monday, Adeolu Ogunbanjo, the president of the National Association of Telecoms Subscribers, and Ogungbayi Ganiyu, the national spokesperson for the Association of Mobile Money & Bank Agents in Nigeria, announced their respective stances.
This comes after Mobile Network Operators were approved by the Nigerian Communications Commission on Monday to raise service rates by a maximum of 50%.
Bosun Tijani, the Minister of Communications and Digital Economy, had alluded to a 30–50% increase in telecom rates.
His stance was the result of a meeting with operators who had suggested raising tariffs by 100%.
The most recent telecom tariff hike approval was made thirteen years after the NCC’s 2013 price template announcement.
In the meantime, Nigerians may have to pay N16.5 per minute for calls from N11, N4 for SMS to N6, and N431.25 for 1 gigabit of data after the most recent pricing hike is implemented.
Additionally, under the new rate regime, telcos may earn N6.7 trillion a year from calls alone. This is because, according to national telephone traffic data from 2023, the entire amount of outgoing and incoming telephone traffic was 205.3 billion minutes and 203.2 billion minutes, respectively.
His position came from a fallout of a meeting between him and operators who had proposed a 100 percent tariff increase.
The latest telecom tariff hike approval comes 13 years after NCC announced price template in 2013.
Meanwhile, with the latest tariff hike approval, it means that upon implementation, Nigerians may be paying N16.5 per minute for calls from N11, the cost of SMS to N6 from N4, and the cost of 1 gigabit of data – N431.25.
Also, telcos may rank in N6.7 trillion annually in revenue from calls only with the new tariff regime; this is because 2023 national telephone traffic data showed that total outgoing telephone traffic was 205.3 billion minutes, while incoming traffic stood at 203.2 billion minutes.
Reacting, Ogunbanjo insisted that telecom subscribers have rejected the 50 percent tariff hike.
According to him, subscribers had agreed to a 5 or 10 percent tariff hike, not the 50 percent as announced by the NCC.
He noted that subscribers had decided to take legal action against the federal government for approving the 50 percent electricity tariff hike.
Ogunbanjo decried that the hike will further impoverish Nigerians already grappling with the Premium Motor Spirit price hike, transportation and food price hike, which is at 38.90 percent in December 2024.
“It is unfortunate that it is the Minister of Communications and Digital Economy, Bosun Tijani, who is the one leading the telecommunications service increase.
“He should not impoverish Nigerians.
“While I understand the challenges facing the telecom sector, we agreed to a 5 to 10 percent tariff hike. If that is not enough, the telcos should go to the capital market to raise funds.
“We are going to court to challenge the decision by the federal government to approve a 50 percent tariff hike because we have given them options.
“We’ve painfully agreed to a telecom tariff hike. We know we are going to pay more but not 50 percent
“The telcos requested a 100 percent tariff hike; of course the telcos want to make more profit to the detriment of subscribers.
“50 percent tariff hike is too much. We are saying no. It is not acceptable. Anything more than 10 percent, we are going to court.
“This tariff will be enormous. Every business will increase their tariff. From the companies to the ordinary POS operators.
“This will cause further impoverishment of Nigerians,” he said.
POS operators mull fee hike
The Association of Mobile Money & Bank Agents in Nigeria said with the 50 percent telecoms hike, its members may have no option but to increase service charges.
Ogungbayi Ganiyu, the National Public Relations Officer at AMMBAN, disclosed this in an interview on Monday.
According to him, members’ services are centred around telecom services, especially data, hence would be most impacted.
He, however, noted that POS operators may desire to bear the cost of the increased telecoms tariff.
“The telecom tariff hike will impact the operations of our members. I am afraid this may also have a multiplier effect on service charge.
“We have not sat down and looked at the latest tariff hike.
“However, the telecom service hike may not affect our operations.
“Our members may decide to bear the burden of the hike.
“Just like bankers, POS operators should be treated with respect in the banking sector because we are assisting them to reach the hinterlands,” he stated.
Worsening poverty in Nigeria
The tariff hike, which is expected to kick off in February 2025, has been described as yet another policy by President Bola Ahmed Tinubu to impoverish Nigerians.
Ogunbanjo, on his part, said the hike would affect both small and big companies across the country.
“This tariff will be enormous. Every business will increase their tariff. From the companies to the ordinary POS operators.
“This will cause further impoverishment of Nigerians,” he said.
For months, MNOs had continued to push for a tariff hike.
Days ago, telecom operators threatened to shut down operations if tariffs were not increased.
MNOs are expected to implement the new tariff regime from February 2024