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Telecom Subscribers Reject Minister’s Proposed 60% Tariff Hike; Give Reasons

Published by admin on January 20th, 2025.

Telecom Subscribers Reject Minister’s Proposed 60% Tariff Hike; Give Reasons

The Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS-Nigeria) has firmly rejected the proposed telecom tariff hike of 30 to 60 percent, which was put forward by the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani.

Representing over 220 million subscribers nationwide, ATCIS-Nigeria expressed disappointment, stating that the proposal contradicts an agreement made with the Nigerian Communications Commission (NCC) and other stakeholders during a meeting held on January 9, 2025.

In a statement released on Sunday, ATCIS-Nigeria’s National President, ‘Sina Bilesanmi, voiced concerns that the minister’s suggestion went against the resolution made during the Abuja meeting. The agreement stipulated that no increase in telecom tariffs would take place until all parties, especially the subscribers, were properly consulted and informed.

Bilesanmi said, “Telecom operators must honor the role of the subscriber advocacy group and adhere to the NCC Act. The NCC should instruct telecom companies to engage with ATCIS for consultation, education, and participation.”

He further explained, “Once an agreement is reached, we can open the discussion for public input on the proposed percentage increase, after which the NCC can review and approve it. Any deviation from this process is unacceptable because the subscribers are the ones paying for the services.”

Bilesanmi also recalled that at the January meeting, it was agreed that there would be no tariff hike until further discussions had been completed with mobile network operators (MNOs) and subscriber representatives. He added that the MNOs, represented by organizations like ATCON and ALTON, were tasked with organizing awareness programs to address these concerns and initiate discussions on potential tariff increases.

In an interview with Arise TV, Minister Tijani revealed that MNOs had initially proposed a 100% tariff hike to stabilize the telecom industry. However, the government rejected this drastic suggestion, proposing instead a more moderate increase of 30 to 60 percent. The minister emphasized that any change in tariffs would need to be in the best interest of the Nigerian public.

Despite this, ATCIS-Nigeria contended that tariff decisions should not be made unilaterally by the minister, but should go through the appropriate regulatory processes. Bilesanmi stated, “We strongly oppose the minister’s proposal. Setting telecom prices is not the minister’s role in a liberalized market.”

He further stressed that the NCC, in collaboration with subscriber groups like ATCIS, should lead tariff discussions, ensuring that decisions are based on thorough data analysis.

The association warned that any increase in telecom tariffs would disproportionately impact Nigerians, particularly small business owners who rely on affordable telecom services for their operations. It further cautioned that such a hike would add to the financial burden on citizens already affected by other economic reforms.

“The government’s ambition to build a digital economy will be undermined if Nigerians are burdened with higher telecom costs. This would have a devastating effect on businesses that rely on affordable communication services, ultimately hindering digital transformation in the country,” Bilesanmi added.

ATCIS-Nigeria called on the government to prioritize consultations with all stakeholders and ensure that any tariff changes reflect the interests and needs of subscribers.