1 week ago
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From Ndubuisi Orji, Abuja
The House of Representatives has urged the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, and the Nigerian Communications Commission (NCC) to halt the increase in telecommunications tariffs until there are improvements in their services.
This followed the adoption of a motion by Obuku Oforji on the need for the NCC not to approve the proposed hike in telecommunications tariffs in the country.
Oforji, in his lead debate, informed the House that Tijani, at a meeting with mobile network operators last January, disclosed that following proposals for an increase in telecommunications tariff by operators, the NCC would announce the approved increase in due course.
The lawmaker, while kicking against the proposed hike, said the telecommunications companies needed to address poor service delivery, which has been a source of concern to subscribers before talking about an increase in tariffs.
Besides, he expressed concerns that tariff increase, at this particular time, would increase the financial burden on Nigerians and negatively affect the country’s quest to leverage technology to drive economic growth.
“Telecommunications companies have been advocating for the hike for the last 11 years. According to the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), they argued that the telcos need cost- reflective tariffs in the face of adverse economic reality, like a record inflation of 34.6 percent in November 2024 and losses resulting from foreign exchange fluctuations.
“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 the telecommunications companies improve on their service delivery (poor network), which Nigerians have been yearning for in years, before embarking on the increase in their tariffs.”
He added: “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 a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e- governance. Informal sector workers, who depend on affordable mobile data to access big work opportunities may find it harder to stay connected.”
He argued that an increase of even 10 percent in tariff would cripple some businesses that rely on telecommunications for their operations.
“It is estimated that a 10 percent increase in telecommunications costs would reduce small business profitability up to seven percent, potentially leading to closure of businesses,” the lawmaker stated.
Billy Osawaru said it was worrisome that the poor are made to suffer for anything that goes wrong in the country.
“Why is it that when things go wrong in this country, the poor people must suffer? First, it was the electricity tariff; now it is the turn of the telecom companies. Nigerians must enjoy these services.
“In the developed world, people are not used to carrying two mobile phones but this is the practice here. The thinking is if there is no service in one, you might be lucky with the other one. I believe that this increase in tariff should wait until services improve.”
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