Nigerians to Sue FG Over 50% Telecom Tariff Hike

Nigerians are gearing up to take legal action against the federal government following the approval of a 50% increase in telecommunication service charges, including calls, data, and SMS. The move, which has sparked widespread backlash, is also expected to trigger price hikes in related sectors, such as Point of Sale (POS) services.

Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers (NATCOMS), and Ogungbayi Ganiyu, National Spokesperson for the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), expressed their discontent in exclusive interviews on Monday. The Nigerian Communications Commission (NCC) had earlier in the day granted Mobile Network Operators (MNOs) approval to raise service tariffs by up to 50%.

This decision follows a meeting between the Minister of Communications and Digital Economy, Bosun Tijani, and telecom operators, who initially proposed a 100% increase. The last major tariff adjustment by the NCC was in 2013, making this the first significant hike in over a decade.

With the new rates, the cost of phone calls will rise from ₦11 to ₦16.5 per minute, SMS charges will increase from ₦4 to ₦6, and 1GB of data will now cost ₦431.25. The telecom industry could generate an estimated ₦6.7 trillion annually from calls alone, based on the 2023 national telephone traffic data, which recorded 205.3 billion outgoing minutes and 203.2 billion incoming minutes.

Ogunbanjo emphasized that telecom subscribers are rejecting the hike, stating that they had only agreed to a 5-10% increase, not 50%. He criticized the government’s decision, particularly in light of recent economic hardships caused by rising fuel prices, transportation costs, and soaring food inflation, which hit 38.9% in December 2024.

He condemned the minister’s role in the decision, arguing that alternative funding options should have been explored, such as seeking capital market investments. Ogunbanjo vowed that subscribers would challenge the tariff increase in court, insisting that it is excessive and detrimental to Nigerians. He warned that the hike would trigger inflation across industries, including small businesses and financial services like POS operations.

POS operators, whose businesses heavily rely on telecom services, are already considering raising their charges. AMMBAN spokesperson Ogungbayi Ganiyu acknowledged the potential impact on their members and hinted that service fees might have to increase. However, he noted that some operators might absorb the extra costs to maintain affordability for customers.

The tariff hike, set to take effect in February 2025, has been described as yet another policy by President Bola Ahmed Tinubu’s administration that could deepen economic hardship for Nigerians. Telecom operators had been pushing for higher tariffs for months and had recently threatened to shut down operations if their demands were not met. With the approval now granted, MNOs are expected to implement the new pricing structure from next month.