Nigerians To Challenge Federal Government Over 50% Telecom Tariff Hike

Nigerians are preparing to take legal action against the federal government following its approval of a 50% increase in telecommunication tariffs for calls, data, and related services.

The decision, announced by the Minister of Communications and Digital Economy, Bosun Tijani, comes after negotiations with telecom operators, who had initially proposed a 100% hike. The minister disclosed last week that the tariffs would rise by either 30% or 50%, depending on the final agreement.

The hike marks the first adjustment since the Nigerian Communications Commission (NCC) introduced its pricing template in 2013. With the new tariffs, Nigerians may face the following:

• Calls: Increase from ₦11 per minute to ₦16.5 per minute.
• SMS: Increase from ₦4 to ₦6 per message.
• Data: Cost of 1GB to rise to ₦431.25.

Based on 2023 national telephone traffic data, telecom operators could generate an estimated ₦6.7 trillion annually from calls alone under the new tariff structure. Outgoing call traffic for the year was recorded at 205.3 billion minutes, while incoming traffic reached 203.2 billion minutes.

Point of Sale (POS) operators have also indicated plans to raise their service charges in response to the new tariffs, which could have a ripple effect on various sectors of the economy.

The President of the National Association of Telecoms Subscribers (NATCOMS), Adeolu Ogunbanjo, and the National Spokesperson for the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), Ogungbayi Ganiyu, have expressed their intention to challenge the decision in court.

Ogunbanjo revealed that subscribers had only agreed to a modest 5-10% increase, not the 50% approved by the government.

“The 50% hike will worsen the financial struggles of Nigerians already burdened by soaring fuel prices, transportation costs, and food inflation, which hit 38.90% in December 2024,” Ogunbanjo said.

Criticizing the government’s approach, Ogunbanjo said, “It is unfortunate that the Minister of Communications and Digital Economy, Bosun Tijani, is leading this move to increase telecommunications tariffs. Instead of further impoverishing Nigerians, the telcos should explore alternative funding options like the capital market.”

He emphasized that while subscribers were willing to accommodate a slight increase, the 50% hike was excessive.

“We understand the challenges faced by the telecom sector, but this tariff hike is unjustifiable. The telcos’ demand for a 100% increase was aimed at maximizing profits at the expense of consumers. A 50% hike is simply unacceptable. Anything beyond a 10% increase will be contested in court,” Ogunbanjo added.

Ogunbanjo warned that the hike could have far-reaching economic consequences, with businesses and small-scale operators, including POS agents, expected to pass on the increased costs to consumers.

The court challenge underscores growing public discontent with the federal government’s decision, as Nigerians brace for the financial strain the new tariffs will impose.