A telecoms subscribers group, the National Association of Telecommunications Subscribers (NATCOMS), has said it is preparing to sue telecommunications companies over a proposed tariff hike that could double service costs nationwide.
Mr Adeolu Ogunbanjo, the National President, (NATCOMS), said that his group plans to file a class-action lawsuit if the telecom operators proceed with the hike without first exploring alternative revenue-generating methods.
Ogunbanjo criticised the proposed 100 percent tariff hike as excessive and unsustainable, urging the Nigerian Communications Commission to deny the operators’ request.
“Initially, we were looking at a marginal increase of five percent to 10 percent. Then the NCC considered a 40 percent increase. Now, telcos are proposing 100 percent, and we are saying no,” Ogunbanjo said.
The proposed tariff hike would raise the cost of a voice call from N11.00 to N22.00 per minute, an SMS from N4.00 to N8.00 per message, and a 1GB data bundle from N1,000 to N2,000.
The NCC is currently reviewing the proposal and has not yet made a final decision.
Ogunbanjo warned that NATCOMS was ready to challenge any approval in court, stating, “This is a sector of national interest, and we will not hesitate to seek legal redress to protect subscribers’ rights.”
The NATCOMS president suggested that telecom operators explore the capital market as an alternative to raising tariffs.
“They can go to the Nigerian Stock Exchange to raise funds. Nigerians will buy their shares, and I am confident it will be oversubscribed. MTN has already done this successfully; other operators like Glo and Airtel should follow suit,” he added.
Ogunbanjo acknowledged the financial pressures faced by telecoms, including inflation and rising operational costs. However, he emphasised that subscribers should not bear the brunt of these challenges without first exploring other viable funding options.
“If the operators cannot meet their financial needs after raising funds through the stock exchange, they can return to the table for discussions,” he said.
The consumer group argued that the proposed hike would disproportionately affect low-income subscribers and could hinder access to essential communication services.
Recall that, Mr Karl Toriola, Chief Executive Officer, MTN Nigeria had recently said that telcos had formally submitted requests to the NCC for the 100 percent tariff hike.
“We’ve put forward requests of approximately 100 percent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola said.
READ ALSO: NATCOMS suggests 10% increase in tariffs by telecoms companies
