Telecoms 50% tariff hike: Subscribers head for court as NCC talks deadlocked

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.

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 to The PUNCH 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.

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.

However, several Federal Government agencies and industry stakeholders, including Finance Minister Wale Edun and the Lagos Chamber of Commerce and Industry, have voiced their support for the tariff adjustment.

They argue that the hike is a necessary step toward addressing the operational challenges faced by telecom operators and have called for corresponding improvements in service quality to justify the increase.

On Monday, the Lagos Chamber of Commerce and Industry issued a statement calling on telecom operators in the country to improve their service delivery and support the government in automating its services.

The Director-General of LCCI, Chinyere Almona, urged the regulators on operational cost efficiency for businesses to help drive down their production costs.

“Looking beyond the hike, the operators and regulators need to settle down into delivering quality services to drive operational cost efficiency for businesses and support the automation of government services.”

Defending the adjustment, Finance Minister Wale Edun emphasised the need to account for rising inflation and operational costs that have accumulated over the past 12 years.

He said this during an interview on Arise News at the 2025 World Economic Forum in Davos, Switzerland, last week.

“There is a need to reflect the fact that over 12 years, there has been a rise in costs, there has been inflation, and that needs to be reflected,” Edun stated. He described the hike as a balancing act, aimed at enabling telecom operators to maintain sustainability while safeguarding consumer interests.

Edun further highlighted the government’s primary objective of ensuring that telecom operators deliver efficient services. “We don’t want dropped calls. We want good quality services from them. And at the same time, we want them growing, employing people, and adding to the country’s GDP,” he said.

Last week, Chairman of ALTON, Gbenga Adebayor, told The PUNCH that many systems within the telecom sector are outdated and equipment requires optimisation.

“We are actively working on improving the cost-mile experience significantly,” he said. Our goal is long-term sustainability—no telecom operator wants to provide poor service quality. Every minute of uptime contributes to revenue, and it’s crucial that we show tangible improvements in user experience and deliver something better to subscribers.”

MTN, the biggest operator, noted that the development is a significant milestone in ensuring the long-term sustainability of the telecom sector while empowering millions of people and businesses and contributing to the country’s overall economic development.

The Chief Executive Officer of MTN Nigeria, Karl Toriola, stated, “This tariff adjustment represents an important step towards addressing the impacts of the prevailing economic challenges on our business and industry.

“It will enable us to maintain the critical investments required to deliver reliable, high-quality services to Nigerians. We remain committed to supporting Nigeria’s digital transformation agenda and driving inclusive growth for all stakeholders.”

Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, defended the tariff hike, describing it as a critical measure to ensure the survival and growth of the telecommunications sector while protecting consumer interests.

CEO Balsingh noted that the development underscores the regulator’s commitment to fostering sustainability and enhancing investment in the telecommunications industry for superior service delivery.

“The tariff adjustment reflects a balanced approach to ensuring the sustainability of the telecom sector while safeguarding the interests of consumers.

“The price increase, which was highly needed for the survival and continued growth of the industry, will enable us to continue investing in network infrastructure, expanding coverage, and delivering improved products and services that meet the evolving needs of our customers,” he said in a statement.

The operator said it remains committed to its mission of bridging the digital divide by offering reliable and affordable telecommunications services.

With Nigeria’s vibrant economy and dynamic population, the company believes the decision by NCC creates an environment conducive to innovation and growth, benefiting consumers and the industry alike.

“We are confident that this development will pave the way for even greater advancements in telecommunications services across the country,” added Balsingh. “Our focus remains on providing exceptional customer satisfaction while contributing to the long-term sustainability of the industry.”