Grassroot center faults NCC for telecom profit bias

By Abubakar Yunusa

The Grassroots Centre for Rights & Civic Orientation has denounced the Nigerian Communications Commission’s (NCC) recent approval of a 50% increase in telecommunications tariffs, citing poor service delivery as a major concern.

The tariff adjustment, approved on January 20, was a response to requests from telecommunications companies, including MTN Nigeria, who had initially lobbied for a 100% increase, citing rising operational costs.

These costs stem from inflation, foreign exchange volatility, diesel price hikes, and increased network maintenance expenses.

In a statement signed by its Executive Director, Armsfree Ajanaku, the Grassroots Centre criticized the NCC for prioritizing the demands of telecom operators over the welfare of Nigerians.

“We call on the NCC to immediately share with Nigerians a comprehensive framework for ensuring telcos deliver world-class services,” Ajanaku said.

“Only such a service-driven approach can foster a telecoms industry that supports Nigeria’s economic development, rather than the arbitrary profiteering of a few telecom giants.”

The group highlighted the disconnect between the tariff hike and the substandard services provided by telecom operators, questioning whether the increased charges could be justified given the current service quality.

“Even if inflation and exchange rate volatility are considered, does a 50% tariff hike not constitute an overkill at a time when Nigerians are grappling with severe economic hardships?” Ajanaku asked.

The new tariff structure raises call rates from ₦11 to ₦16.50 per minute, SMS charges from ₦4 to ₦6, and the cost of 1GB of data from ₦350 to ₦431.25. The Grassroots Centre described the increases as “extortionate” and accused the government of passing the burden of its economic policies onto citizens.

The organization also criticized the NCC for failing to provide a clear roadmap to improve telecom services, urging the commission to focus on enhancing service quality rather than enabling profit-driven price increases.

“As a regulator, is the NCC’s role to help telcos engage in price gouging or to ensure a telecoms industry with world-class quality of service?” Ajanaku queried.

Nigerians, already burdened by rising fuel costs and electricity tariffs, now face increased telecom expenses, further exacerbating their financial struggles.

The Grassroots Centre emphasized that the tariff hike punishes ordinary citizens for the government’s poorly implemented economic policies and urged an immediate reversal of the increase.