Telecoms 50% Tariff Hike: Subscribers Sue as NCC Talks Fail

Telecoms 50% Tariff Hike: Subscribers Sue as NCC Talks Fail

Nigerians are pushing back against the controversial 50% increase in call and data tariffs. Telecom subscribers and advocacy groups are now taking legal action after failed negotiations with the Nigerian Communications Commission (NCC).

The National Association of Telecommunications Subscribers (NATCOMS) announced plans on Wednesday to sue the telecom regulator. The group cited the NCC’s refusal to reduce the tariff hike to a more reasonable 10%.

Announced last Monday, the tariff hike—marking the first in over a decade—has sparked concerns from critics like the Socio-Economic Rights and Accountability Project (SERAP) and the Nigeria Labour Congress (NLC).

These groups argue that the increase worsens Nigeria’s economic hardships. The hike disproportionately affects low-income households and small businesses struggling with inflation and economic instability.

Subscribers Demand Action Against Tariff Hike

Representing 157 million Nigerians who depend on affordable telecom services, NATCOMS took action on Friday. They sent a letter urging the NCC to reconsider within three working days. However, the regulator failed to respond.

NATCOMS President Adeolu Ogunbanjo revealed on Tuesday that the NCC’s silence has left consumers frustrated. Telecom service costs continue to rise without intervention.

“We gave them until the end of the day (Tuesday) to respond,” Ogunbanjo said. “Since we have not received any reply, we will proceed with legal action starting tomorrow (Wednesday).”

As of this report’s filing, NCC’s Director of Publicity, Reuben Mouka, had not responded to inquiries sent via text messages.

Ogunbanjo stressed that the letter to NCC outlined the burden the 50% hike places on subscribers. Lower-income earners rely on affordable communication services for daily activities.

“Our National Secretary confirmed that the NCC has until 11:59 pm today (Tuesday) to respond. They can still reply through their website, but without a response, we have no choice but to proceed with court action,” he added.

The association’s legal process is now set in motion, with its plea letter expected to be released to the press tomorrow.

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SERAP Joins Legal Battle

Adding to the growing legal pressure, SERAP filed a lawsuit last Friday at the Federal High Court in Abuja. The suit is against President Bola Tinubu’s government, describing the tariff hike as “arbitrary, unconstitutional, unlawful, unfair, and unreasonable.”

In the suit, numbered FHC/ABJ/CS/111/2025, SERAP seeks to determine if the NCC’s decision violates Nigerians’ rights to freedom of expression and access to information.

“The unilateral decision by the NCC to authorise telcos to increase telecom tariffs by 50% is arbitrary and inconsistent with constitutional guarantees,” SERAP stated.

SERAP is also requesting an interim injunction preventing the NCC from implementing the tariff hike.

Telecom Operators Defend Action

While subscribers and rights groups oppose the hike, telecom operators justify it. The increase, set to take effect in February, is necessary to sustain their businesses and improve services.

Major industry players plan to invest in network upgrades, better coverage, and enhanced connectivity. These improvements are aimed at making the higher tariffs more acceptable to consumers.

The Nigerian telecom sector continues to grow, but analysts warn that a tariff hike alone may not resolve existing challenges. Operators still face volatile exchange rates, making long-term investment planning difficult.

Government and Industry Stakeholders Support Tariff Hike

Some government agencies and stakeholders, including Finance Minister Wale Edun and the Lagos Chamber of Commerce and Industry (LCCI), support the increase. They argue that the hike is necessary to address telecom operators’ operational challenges.

On Monday, LCCI called on telecom operators to enhance service delivery. The chamber urged the government to automate services and ensure regulatory efficiency.

LCCI Director-General Chinyere Almona said, “Looking beyond the hike, operators and regulators must focus on delivering quality services and reducing operational costs for businesses.”

Defending the increase, Finance Minister Wale Edun highlighted rising inflation and operational costs accumulated over the past 12 years.

“There is a need to reflect rising costs and inflation over the last 12 years,” Edun stated at the 2025 World Economic Forum in Davos, Switzerland. He described the hike as a balancing act between sustainability and consumer protection.

Edun emphasized the government’s goal of ensuring quality services. “We don’t want dropped calls. We want reliable services while allowing telecom companies to grow, create jobs, and contribute to the GDP,” he said.

Telecom Industry Leaders Weigh in on Tariff Hike

ALTON Chairman Gbenga Adebayo told journalists last week that many telecom systems are outdated and need urgent upgrades.

“We are actively working on significantly improving the cost-mile experience,” he said. “Sustainability is key—no telecom operator wants to provide poor service quality. Every minute of uptime contributes to revenue, and we must deliver better experiences to subscribers.”

MTN Nigeria, the country’s largest telecom provider, sees the development as a crucial step toward industry sustainability. The company aims to empower businesses and contribute to Nigeria’s economic growth.

MTN Nigeria CEO Karl Toriola stated, “This tariff adjustment is essential for addressing economic challenges affecting our industry. It allows us to maintain critical investments for reliable, high-quality services.”

Toriola reaffirmed MTN’s commitment to Nigeria’s digital transformation and inclusive growth.

Airtel Nigeria CEO Dinesh Balsingh also defended the tariff hike, calling it necessary for the telecom sector’s survival and expansion.

“This adjustment reflects a balanced approach to sustainability while safeguarding consumer interests,” Balsingh said. “It enables us to continue investing in network infrastructure, expanding coverage, and enhancing service quality.”

Airtel emphasized its commitment to bridging the digital divide through reliable and affordable telecommunications services.

With Nigeria’s dynamic economy, Airtel believes the NCC’s decision fosters an environment conducive to innovation and industry growth.

“This development will drive advancements in telecom services across the country,” Balsingh added. “Our priority remains customer satisfaction and long-term industry sustainability.”

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