The House of Representatives has urged the Minister of Communications, Innovation and Digital Economy and the Nigerian Communications Commissions to suspend the impending hike in telecommunications tariffs until their service improves.
The resolution followed the adoption of a Motion Of Urgent Public Importance On ” The Need For The Nigerian Communications Commission Not To Approve The Impending Hike In The Telecommunications Tariffs” moved by Mr. Oforji Oboku.
Leading the debate on the motion, he said that the House notes that speaking after a stake holders’ meeting with Mobile Network Operators in Abuja on Wednesday 8th of January, 2025, the Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, disclosed that telecommunication tariffs will soon increase.
“Also note that according to the Minister, consultations are ongoing as there have been agitations from some of these companies to increase tariffs to as high as 100 percent. He however said it will not be an 100 percent increase and that the Nigerian Communications Commission would approve the new tariffs and announce them in due course.
“Further note that the argument of the telecommunications companies for the hike includes, the cost of investment, better networks, increasing demand for digital services across sectors such as education, banking and healthcare amongst others.
Aware that the telecommunications companies have been advocating for the hike for the last eleven years, according to the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) they argued that the telcos need cost- reflective tariffs in the face of adverse economic reality like a record inflation of 34.6 percent in November 2024 and losses resulting from foreign exchange fluctuations,” he said.
Mr. Oboku also noted that the House is worried 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.
“It is imperative that the telecommunications companies improve on their service delivery (poor network), which Nigerians have been yearning for in years, before embarking on the increase in their tariffs.
Affordable connectivity
Also worried that 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. Affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e- governance.
Informal sector workers who depend on affordable mobile data to access gig work opportunities may find it harder to stay connected.
“Saddened that those small businesses, which rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burden. Imagine a scenario where a 10 percent increase is approved. It is estimated that a 10 percent increase in telecommunications costs would reduce small business profitability up to 7 percent, potentially leading to closure of businesses,” he explained.
In their contributions, lawmakers called for improvement in the services rendered by the Service Providers before any increase in the tariff.
They stressed that Nigerians are already grappling with various economic challenges and telecommunication companies should not add to their plights.
After a long debate on the motion, it was adopted.
Ruling on the motion, the Speaker of the House, Mr. Tajudeen Abbas mandate the Committee on Telecommunications to ensure compliance.
Lateefah Ibrahim
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