Adedayo Akinwale in Abuja
The House of Representatives has called on the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, and the Nigerian Communications Commissions (NCC) to suspend the proposed hike in telecommunication tariffs until there is an improvement in the services of the telecommunication firms.
The resolution of the House followed the adoption of a motion of urgent public importance on the need for the NCC not to approve the impending hike in the telecommunication tariffs moved at the plenary on Tuesday by Hon. Oforji Oboku.
Moving the motion, the lawmaker recalled that speaking after a stakeholders’ meeting with mobile network operators in Abuja on Wednesday, January 8, 2025, Tijani disclosed that telecommunication tariffs would soon increase.
Oboku said according to the minister, consultations are ongoing as there have been agitations from some of these companies to increase tariffs to as high as 100 per cent.
He said the minister, however, said it would not be an 100 per cent increase and that the NCC would approve the new tariffs and announce them in due course.
The lawmaker stressed that the argument of the telecommunication companies for the hike included the cost of investment, better networks, increasing demand for digital services across sectors such as education, banking and healthcare, amongst others.
Oboku recalled that telecommunication companies had been advocating for the hike for the last 11 years, according to the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON).
He said they argued that the telcos need cost- reflective tariffs in the face of adverse economic reality like a record inflation of 34.6 per cent in November 2024 and losses resulting from foreign exchange fluctuations.
Oboku expressed worry that the National Association of Telecoms Subscribers has rejected the proposed increase in tariffs, describing it as insensitive and a further burden on consumers already grappling with economic hardship, and poor network service delivery.
He said: “It is imperative that the telecommunication companies improve on their service delivery (poor network), which Nigerians have been yearning for in years, before embarking on the increase in their tariffs.”
The lawmaker expressed concern that the far reaching effects of these price hikes would deepen financial struggles for the average Nigerian, threaten the country’s vision of leveraging technology to drive economic revival, exacerbate poverty and widen existing inequalities hitting lower income families the hardest.
Oboku argued that affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e- governance.
He said the informal sector workers, who depend on affordable mobile data to access gig work opportunities, may find it harder to stay connected.
Saddened that those small businesses, which rely heavily on affordable telecommunication for operations, marketing and customer engagement would face additional financial burden.
According to him, “Imagine a scenario where a 10 per cent increase is approved. It is estimated that a 10 per cent increase in telecommunication costs would reduce small business profitability up to 7 per cent, potentially leading to closure of businesses.”
The House’s resolution include: “Urge the Minister of Communications, Innovation and Digital Economy and the Nigerian Communications Commissions to suspend the impending hike in telecommunications tariffs until their service improved.”
It also mandated its Committee on Telecommunications to ensure compliance.
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