NATCOMS Urges NCC To Approve 10% Tariff Hike For Telcos

NCC To Approve Tariff Hike: The National Association of Telecommunications Subscribers (NATCOMS) has called on the Nigerian Communications Commission (NCC) to approve a marginal 10% tariff increase for telecom companies to alleviate the rising operational costs in the sector.

NATCOMS Urges NCC To Approve Tariff Hike

The National President of the association was quoted by the News Agency of Nigeria (NAN) as saying that the tariff hike is necessary for telecom companies to sustain their operations and improve service quality.

However, he pointed out that the current economic conditions are negatively impacting telecom operators’ business, thereby making it crucial for stakeholders to find a balanced solution.

He stated: “When you now look at the quality of service the telecoms companies are rendering to this day, it is very poor, and they are also complaining. Do not forget that they said their operations were getting burdensome because of the rising costs of things, such as petrol, diesel, and some other things, that will make the network function appropriately.”

Additionally, he added, “They are complaining. I think in the last 11 years, they have not increased their service charge, operational costs have increased but not physically like we see in petrol.”

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Telecom Under Increasing Financial Strain

Noting that telecom companies have been operating under increasing financial strain due to the rising costs of essentials that are needed to power their networks, Ogunbanjo stressed that although the proposed 10% tariff hike might seem significant to subscribers, it was essential for improving the overall quality of telecommunications services in Nigeria.

Ogunbanjo emphasized that although the proposed 10% tariff hike might seem significant to subscribers, it is essential for improving the overall quality of telecommunications services in Nigeria.

“The moment NCC approves the marginal increase of 10% which is a lot, they will have to use it to improve services for their subscribers,” Ogunbanjo added, stressing that subscribers would see better quality in services following the increase.

He further highlighted the need for macroeconomic input, saying, “We need to take our macroeconomists seriously. Many of them have spoken up saying there needs to be help for the sector.” 

On the plans by the telcos to shed loads, which some had begun, Ogunbanjo rejected the proposed load shedding, saying it is similar to how electricity is rationed in the country.

He stated: “Just like they are doing for electricity, for instance, in Lagos state – Agege, Apapa, and Ikeja, probably they will have service today and other areas will not have, you know, they start rationing like that, that is load shedding.”

Finally, Ogunbanjo also cautioned that telecom subscribers would hold operators accountable for any service disruptions caused by load shedding, potentially damaging the economy further.

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