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Subscribers Set to Sue NCC Over Telecoms 50% Tariff Hike

Madukwe Nwabuisi by Madukwe Nwabuisi
January 29, 2025
in Law
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Telecom Operators to Inform Consumers Promptly of Any Major Outages -NCC
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Nigerians are mounting a resolute challenge to the contentious 50 per cent increase in call and data tariffs, with telecom subscribers and advocacy groups escalating the matter to the courts following unsuccessful attempts to engage the Nigerian Communications Commission (NCC).

The National Association of Telecommunications Subscribers declared its intention to initiate legal proceedings against the telecom regulator on Wednesday, citing the NCC’s failure to address its demand for a reduction of the tariff hike to a more acceptable 10 per cent.

Announced last week Monday, the tariff hike—marking the first adjustment in over a decade—has ignited widespread concerns from critics like the Socio-Economic Rights and Accountability Project and the Nigeria Labour Congress.

These groups, including NATCOMS, contend that the increase exacerbates already challenging economic conditions, disproportionately affecting low-income households and small businesses struggling to navigate rising inflation and a volatile economic climate.

The subscriber group, which represents 157 million Nigerians who rely on affordable telecom services, on Friday initiated talks via correspondence, requesting the NCC reconsider its stands within three working days. The regulator failed to do so.

NATCOMS President, Adeolu Ogunbanjo, who spoke on Tuesday, revealed the NCC’s inaction to respond to its request, which has left consumers increasingly disillusioned by the rising cost of telecom services.

Ogunbanjo stated, “We gave them until the end of the day (Tuesday) to respond. Since we have not received any response, we are moving forward with the court process starting tomorrow (Wednesday).

The Director of Publicity at the NCC, Reuben Mouka, had not responded to questions put forward by our correspondent via text messages as of the time of filing this report.

Ogunbanjo said the letter sent to NCC highlighted the burden that the 50 per cent hike places on subscribers, especially those in lower-income brackets who rely on affordable communication services for their daily activities.

The NATCOMS President said, “Our National Secretary informed us that the NCC has until 11:59 pm today (Tuesday) to respond. They can still reply through their website, which is available 24/7, but with no word from them, we are left with no choice but to proceed with legal action.”

The association’s decision to move forward with court action is now imminent, with the plea letter scheduled to be released to the press tomorrow.

Adding to the mounting legal pressure on the NCC, the Socio-Economic Rights and Accountability Project also filed a lawsuit last Friday at the Federal High Court in Abuja against the government of President Bola Tinubu. The rights group described the tariff hike as “arbitrary, unconstitutional, unlawful, unfair, and unreasonable.”

In the suit, numbered FHC/ABJ/CS/111/2025, SERAP is asking the court to determine whether the NCC’s decision to authorise the tariff hike violates Nigerians’ freedom of expression and access to information.

“The unilateral decision by the NCC to authorise telcos to hike telecom tariffs by 50 per cent is arbitrary and inconsistent with constitutional guarantees,” SERAP said in its filing.

SERAP is also seeking “an order of interim injunction restraining the NCC, its officers, agents, privies, assigns, or any other person or persons acting on its instructions from further implementing, enforcing and doing any act to give effect to the decision of the NCC authorizing telecom tariff hike by 50 percent.

While telecom operators justify the hike, which is supposed to take effect in February as a necessary step to sustain their businesses, many are also planning to expand their infrastructure to improve services.

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Several major players have outlined plans to invest in network upgrades, better coverage, and more reliable connections, all aimed at making the higher tariffs more justifiable in the eyes of consumers.

These moves are part of broader efforts to adapt to the increasing demand for digital services as Nigeria’s telecom sector continues to grow.

However, analysts caution that the tariff hike alone may not solve the sector’s underlying issues. Despite the price increase, telecom companies continue to struggle with volatile exchange rates, which add pressure to their already strained financial models.

The fluctuating value of the naira against the dollar makes it difficult for telecom operators to plan long-term investments and cover operational costs, even with a tariff hike.

Madukwe B. Nwabuisi
Madukwe Nwabuisi

Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.

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