The House of Representatives on Tuesday urged the Minister of Communications, Innovation and Digital Economy and the Nigerian Communications Commission to suspend the impending hike in telecommunications tariffs until service delivery improves.
This followed the adoption of a motion moved under matters of urgent public importance, sponsored by the member representing Yenagoa Opokuma Federal Constituency of Bayelsa State, Hon. Obuku Oforgi.
While moving the motion, the lawmaker said, “Notes that, speaking after a stakeholders’ meeting with Mobile Network Operators in Abuja on Wednesday, January 8, 2025, the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, disclosed that telecommunication tariffs will soon increase.”
According to him, “Also note that, according to the Minister, consultations are ongoing, as there have been agitations from some of these companies to increase tariffs by as much as 100 percent.
“He, however, said it will not be a 100 percent increase and that the Nigerian Communications Commission would approve and announce the new tariffs in due course.
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“Further note that the argument of the telecommunications companies for the hike includes the cost of investment, better networks, and increasing demand for digital services across sectors such as education, banking, and healthcare, among others.
“Aware that telecommunications companies have been advocating for the hike for the last eleven years, the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) argued that telcos need cost-reflective tariffs in the face of adverse economic realities such as record inflation of 34.6 percent in November 2024 and losses resulting from foreign exchange fluctuations.
“Worried that the National Association of Telecoms Subscribers has rejected the proposed increase in tariffs, describing it as insensitive and a further burden on consumers already grappling with economic hardship and poor network service delivery.
“It is imperative that telecommunications companies improve their service delivery, which Nigerians have been yearning for over the years, before embarking on any tariff increase.
“Also worried that 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.
“Affordable connectivity is essential for progress 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.
“Saddened that small businesses, which rely heavily on affordable telecommunications for operations, marketing, and customer engagement, will face an additional financial burden.
“Imagine a scenario where a 10 percent increase is approved. It is estimated that a 10 percent increase in telecommunications costs would reduce small business profitability by up to 7 percent, potentially leading to business closures.”
While seconding the motion, Hon. Billy Osawaru pointed out that there was no justification for the tariff hike due to the poor service provided by telecom operators.
When the motion was put to a voice vote by the Speaker, Hon. Tajudeen Abbas, who presided over the plenary session, it was unanimously supported by members.
The motion was referred to the House Committee on Telecommunications for further legislative action.
