Halt planned telecom tariff increase now -Reps tell FG

Date:

By Christiana Ekpa

The House of Representatives on Tuesday directed the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, and the Nigerian Communications Commission (NCC) to put the planned increase in telecom tariffs on hold until service quality improves.

The  resolution was sequel to a motion of urgent public importance on the “Need for the Nigerian Communication Commission not to approve the impending hike in the Telecommunications Tariffs” “ by Rep. Obuku Oforji, member representing Yenagoa/Kolokuma Opokuma Federal Constituency of Bayelsa State on Tuesday T plenary.

Rep. Oforji recalled that after a meeting with mobile network operators in Abuja on January 8, 2025, the minister hinted at an impending tariff hike. According to him, telecom companies have been pushing for an increase, with some proposing a 100 percent hike. However, Tijani clarified that while there would be an increase, it would not be as high as 100 percent, and the NCC would determine and announce the new rates.

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The lawmaker explained that telecom operators justified the planned hike by citing rising investment costs, the need for better network infrastructure, and the increasing demand for digital services in sectors such as education, banking, and healthcare.

Oforji expressed worries 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 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.”

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He also expressed concern 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 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 gig work opportunities may find it harder to stay connected.

“Saddened that those small businesses, which rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burden.

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“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 up to 7 percent, potentially leading to closure of businesses,” he added.

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