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Nigeria: FG Justifies Tariff Hike Amid Legal Challenges from SERAP and Subscribers

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FG Justifies Tariff Hike Amid Legal Challenges from SERAP and Subscribers

The Federal Government, through the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has defended the recent 50% tariff hike for telecom services despite public outcry and looming legal actions from advocacy groups and subscribers.

Speaking before lawmakers during a budget defense session, Minister Tijani attributed the tariff adjustment to escalating economic pressures, including inflation and surging costs of imported goods.

“Rising inflation and operational costs are the reasons for the recent tariff increase,” Tijani explained. He also highlighted the challenges of infrastructure investment, noting, “Historically, telecommunications infrastructure development has been left to private companies. These firms typically invest in areas where economic activities are evident, using satellite data to identify such regions.”

Pushback from Advocacy Groups and Subscribers

The National Association of Telecoms Subscribers (NATCOMS) and the Socio-Economic Rights and Accountability Project (SERAP) have strongly opposed the hike. Both groups have vowed to challenge the decision in court.

Adeolu Ogunbanjo, President of NATCOMS, revealed plans to engage the Nigerian Communications Commission (NCC) to negotiate a reduction in the hike, proposing a more modest increase of 5-10%. Should discussions fail, NATCOMS intends to pursue legal action.

Similarly, SERAP issued a 48-hour ultimatum demanding the reversal of the tariff hike, describing it as “unlawful.” Through its official X (formerly Twitter) account, SERAP stated, “The Tinubu administration and telcos must immediately reverse the unlawful increase in calls and data costs. We’ll see in court if the 50% tariff hike is not reversed within 48 hours.”

NCC’s Response and Rationale

The NCC approved the tariff adjustment on Monday, capping it at 50%—significantly lower than the 100% increase proposed by some operators. The commission cited rising operational costs as the main reason for the adjustment, marking the first such change since 2013.

In a statement signed by its Director of Public Affairs, Reuben Muoka, the NCC emphasized its commitment to balancing consumer protection with industry sustainability.

“The NCC has prioritized striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem,” the statement read.

The NCC also mandated operators to implement the adjustments transparently and fairly, recognizing the financial burdens on Nigerian households and businesses.

Public Reaction

The tariff hike has sparked widespread debate, with many Nigerians expressing frustration over the increased cost of essential communication services. Critics argue that the decision disproportionately impacts low-income earners who rely on affordable call and data services for daily activities.

While the government and telecom operators defend the move as necessary for sustaining the industry, advocacy groups and subscribers continue to demand a more considerate approach to addressing operational challenges.

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