The House of Representatives has called for the immediate suspension of the recently approved 50% hike in telecom tariffs. This demand follows a motion of urgent national importance raised by Oboku Oforji during Tuesday’s plenary session.
In addition to rejecting the tariff increase, lawmakers expressed frustration over the poor service delivery by telecom operators. They insisted that any price adjustment should be contingent on significant improvements in service quality.
The House directed the Nigerian Communications Commission (NCC) and the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, to halt the tariff increase, citing the prevailing economic challenges faced by Nigerians.
Despite these concerns, telecom operators have begun implementing the new tariff regime, which had been previously approved by the NCC. Many subscribers took to social media to express their dismay over a noticeable 50% increase in the cost of calls, data, and text messages.
As of December 2023, Nigeria had over 224 million telecom subscribers, according to official data from the NCC. MTN leads the market with over 87 million subscribers, representing 38.79% of the total market share. Globacom and Airtel follow with 61 million subscribers each, while 9mobile has 13.9 million users.
Earlier in January, the NCC announced its approval of the 50% tariff increase, stating that the decision was necessary for industry sustainability. Reuben Muoka, a spokesperson for the NCC, explained that although some network operators had requested an increase of over 100%, the regulator settled for a lower adjustment after considering ongoing industry reforms.
The NCC justified the increase under Section 108 of the Nigerian Communications Act, 2003, which empowers the commission to regulate and approve telecom tariff rates.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had initially threatened industrial action in protest against the tariff hike. However, after last-minute negotiations with government representatives, the unions decided to suspend their planned demonstrations.
Nigerians are currently facing one of the worst economic crises in decades. The removal of fuel subsidies and the floating of the naira have triggered severe inflationary pressures, significantly increasing the cost of living.
Since taking office in May 2023, President Bola Tinubu has implemented these economic policies, leading to petrol prices soaring from under N200 per litre to over N1,100 in many areas. Simultaneously, the naira has depreciated drastically, falling from around N700/$ to approximately N1,600/$.
As food and commodity prices skyrocket, millions of Nigerians are struggling to cope with the worsening cost of living crisis. The telecom tariff hike has only added to the financial strain, prompting widespread calls for its immediate reversal.
The House of Representatives' intervention signals growing pressure on the government and regulatory bodies to reconsider policies that further burden citizens already grappling with economic hardship.
