The National Association of Telecommunications Subscribers, NATCOMS, will today, Friday, engage the Nigerian Communications Commission on the contentious tariff hike.
NATCOMS is seeking a possible reversal of the 50 per cent telecom tariff hike to 10 per cent. This is even as the Nigeria Labour Congress, NLC has signaled readiness for nationwide protest.
Recall that the Federal Government had approved a 50 per cent increase for the telecoms after their initially request for a 100 per cent hike.
However, NATS are pushing for a 10 per cent adjustment. This is even as the association stated that if talks fail, they plan to file a lawsuit next week to challenge the decision.
Recall that the operators had said, the hike, the first in over a decade, is aimed at revitalizing the struggling telecom sector.
Source stated that operators contribute about 14 per cent to Nigeria’s economy.
However, the tariff hike has continued to spark widespread debates and controversies across the country.
The National President of NLC, Joseph Ajaero, on Wednesday criticized the increase. He described it as an added burden on Nigerian workers who earn less than $50 per month as minimum wage.
NLC, therefore, warned of potential collective action, if the hike is affected. The action, the union said will include a nationwide boycott of telecom services. A move that will compel the Government and the NCC to reverse the decision.
This position was maintained by the NATCOMS President, Adeolu Ogunbanjo.
Speaking with The PUNCH on the development on Thursday, Ogunbanjo said, “Going to court is the civil way of doing things, not boycotting telecom services.”
He, however, expressed concerns that such actions would harm investor confidence in the Nigerian market. This is even as the Government is working to attract foreign investment to the country.
Ogunbanjo said, “We are not backing the NLC at all. It will send wrong signals to investors. These are private businesses, and President Bola Tinubu is trying hard to woo investors. So, we can’t support that rascality.”
“Tariff rates on phone calls and messages have remained unchanged. Even as operators face rising costs fueled by inflation, exchange rate volatility, and substantial investments needed to meet increasing consumer demand.
“These challenges have created significant financial strain. Thereby jeopardizing the sustainability of the telecommunications sector—a vital pillar of Nigeria’s digital economy.
However, the subscribers association have noted that the telecom sector is a model of successful privatization in Nigeria. As a result, they urge the NLC to seek solutions that benefit both consumers and operators.
“Telcoms are there to make a profit, and at the same time, consumers must not be exploited. We’ve been at this for quite a while,” Ogunbanjo said.
On its part, NATCOMS have reiterated its call for telecom operators to explore alternative funding options. These, they said should include Initial Public Offerings, IPOs to raise capital.
“They should go to the stock market. I know people will buy. That is the way to go. But boycotting businesses because telecom expenses take a percentage of salaries is not a solution. You can’t kill the business by protesting,” Ogunbanjo added.
Regarding planned engagements with the NCC, the subscribers’ President noted that discussions would remain constructive.
“We will engage them through correspondence and phone calls on Friday. This has been our approach for quite some time,” Ogunbanjo added.
source: PUNCH
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