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Nigerians to Sue FG Over 50% Telecoms Tariff Hike

gisthub Jan 21, 2025
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Nigerians have vowed to challenge the federal government’s approval of a 50 percent increase in calls, data, and other telecommunication tariffs in court.

The Minister of Communications and Digital Economy, Bosun Tijani, had hinted last week that telecom tariffs would rise by either 30 or 50 percent, following a disagreement between him and telecom operators who had proposed a 100 percent tariff increase.

This approval marks 13 years since the Nigerian Communications Commission (NCC) announced the price template in 2013, which is expected to have a ripple effect, with Point of Sales Operators indicating they may raise their service charges.

Once implemented, Nigerians may face a new tariff structure where calls cost N16.5 per minute (up from N11), SMS costs N6 (up from N4), and 1GB of data would be priced at N431.25. Telecom companies may also generate up to N6.7 trillion annually in revenue from calls alone, based on 2023 national telephone traffic data.

The President of the National Association of Telecoms Subscribers, Adeolu Ogunbanjo, and the National Spokesperson for the Association of Mobile Money & Bank Agents in Nigeria, Ogungbayi Ganiyu, have both expressed intentions to take legal action against the tariff hike.

Ogunbanjo emphasized that subscribers were only agreeable to a 5 or 10 percent increase, not the 50 percent hike that was announced by the NCC. He criticized the hike, saying it would worsen the financial struggles of Nigerians who are already grappling with rising fuel, transportation, and food prices, which saw a 38.90 percent increase in December 2024.

“It is unfortunate that it is the Minister of Communications and Digital Economy, Bosun Tijani, who is the one leading the telecommunications service increase.

“He should not impoverish Nigerians.

“While I understand the challenges facing the telecom sector, we agreed to a 5 to 10 percent tariff hike. If that is not enough, the telcos should go to the capital market to raise funds.

“We are going to court to challenge the decision by the federal government to approve a 50 percent tariff hike because we have given them options.

“We’ve painfully agreed to a telecom tariff hike. We know we are going to pay more but not 50 percent.

“The telcos requested a 100 percent tariff hike; of course the telcos want to make more profit to the detriment of subscribers.

“50 percent tariff hike is too much. We are saying no. It is not acceptable. Anything more than 10 percent, we are going to court.

“This tariff will be enormous. Every business will increase their tariff. From the companies to the ordinary POS operators.”

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