The House of Representatives has called on the Nigerian Communications Commission to halt the recently proposed 50 per cent increase in telecommunication tariffs.
Lawmakers argued that such a hike would aggravate the current economic challenges Nigerians are facing due to the removal of fuel subsidies.
The decision followed a motion of urgent public importance moved by Oboku Oforji, a member of the Peoples Democratic Party from Bayelsa State, during Tuesday’s plenary.
The motion, titled “Need for the Nigerian Communications Commission not to approve the impending hike in telecommunications tariffs,” saw Oforji express concerns over the justification given by telecommunications companies for the increase.
While acknowledging that the telcos linked the hike to rising operational costs and a desire to improve service quality, he insisted that Nigerians are already struggling to meet basic needs.
“The House is aware that telecommunications companies have been advocating for the hike for the last eleven years. The Association of Licensed Telecom Operators of Nigeria and the Association of Telecommunication Companies of Nigeria argued that the telcos need cost-reflective tariffs in the face of adverse economic realities like record inflation of 34.6 per cent in November 2024 and losses resulting from foreign exchange fluctuations,” Oforji said.
He reminded his colleagues 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 also emphasized that service delivery must improve before telecom companies can consider increasing their tariffs.
“The far-reaching effects of these price hikes will 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,” he warned.
Oforji highlighted how affordable connectivity plays a vital role in key sectors like digital banking, education, healthcare, agriculture, and e-governance.
He stressed that many informal sector workers who rely on affordable mobile data for gig work opportunities could be priced out of staying connected.
“Small businesses, which rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burden. It is estimated that a 10 per cent increase in telecommunications costs would reduce small business profitability up to 7 per cent, potentially leading to the closure of businesses,” he added.
However, Dominic Okafor, a member of the All Progressives Grand Alliance, supported the increment to a degree, explaining that service providers needed the funds for infrastructure investment and service improvement.
“For these telecom service providers to improve their performances, they need to make money to make further investment in infrastructure but this increment should not go as high as 100 per cent,” Okafor said.
His stance was opposed by Billy Osawaru, a lawmaker from Edo State, who called on service providers to prioritize service quality before increasing tariffs.
“Why is it that when things go wrong in this country, the poor people must suffer? First, it was electricity tariff, now it is the turn of the telecom companies. Nigerians must enjoy these services,” Osawaru stated.
He added, “In the developed world, people are not used to carrying two mobile phones but this is the practice here. The thinking is if there is no service in one, you might be lucky with the other one. I believe that this increase in tariff should wait until services improve.”
Following the debate, the House adopted the motion and urged the Minister of Communications, Innovation and Digital Economy, along with the NCC, to suspend the tariff increase until telecom services improve significantly.
