SUSPEND TELECOM TARIFF HIKE – HOUSE OF REPS DIRECTS NCC, MINISTER

th 33 1

SUSPEND TELECOM TARIFF HIKE – HOUSE OF REPS DIRECTS NCC, MINISTER

The House of Representatives Tuesday directed the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani and the Nigerian Communications Commissions, NCC, to suspend the impending hike in telecommunications tariffs until services are improved.

The decision of the House was sequel to the adoption of a motion of urgent public importance moved at the plenary on Tuesday by Oforji Oboku.

Presenting the motion, the lawmaker recalled that speaking after a stakeholders’ meeting with Mobile Network Operators in Abuja on Wednesday 8th of January, 2025, Tijani disclosed that telecommunication tariffs would soon increase.

The lawmaker stressed 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.

Oboku recalled that telecommunications companies had been advocating for the hike for the last 11 years, according to the Association of Licensed Telecom Operators of Nigeria, ALTON, and the Association of Telecommunication Companies of Nigeria, ATCON.

The lawmaker noted 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 explained that the telcos need cost- reflective tariffs in the face of adverse economic realities like a record inflation of 34.6 percent in November 2024 and losses resulting from foreign exchange fluctuations.

“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.”

The lawmaker expressed concern that the far reaching effects of these price hikes would 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.

Oboku argued that affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e- governance.

After a debate, the House resolved: “To urge the Minister of Communications, Innovation and Digital Economy and the Nigerian Communications Commissions to suspend the impending hike in telecommunications tariffs until their service improved.”

  • Dons Eze

    DONS EZE, PhD, Political Philosopher and Journalist of over four decades standing, worked in several newspaper houses across the country, and rose to the positions of Editor and General Manager. A UNESCO Fellow in Journalism, Dr. Dons Eze, a prolific writer and author of many books, attended several courses on Journalism and Communication in both Nigeria and overseas, including a Postgraduate Course on Journalism at Warsaw, Poland; Strategic Communication and Practical Communication Approach at RIPA International, London, the United Kingdom, among others.

    Related Posts

    TELECOM OPERATORS INCREASE TARIFFS, FROM 2K TO 6K

    TELECOM OPERATORS INCREASE TARIFFS, FROM 2K TO 6K Nigerians have gone on social media to lament after they woke up to see that their mobile operators have increased tariffs. This realisation caused a number of popular telcos to trend on social media. Social media users lamented that an internet bundle that used to be available for N2K for 15GB of data is now N6,000 for the same 15GB of data. Nigerians took to social media to lament this increase, while pointing out that the economic situation just keeps worsening by the day. Recall that in January 2025, the NCC approved a request for tariff adjustment by operators after telcos’ agitation for cost-reflective prices in the face of harsh economic conditions. The NCC capped the increase at a maximum of 50% of the current tariffs, though lower than the over 100% requested by some network operators. However, the current increase being experienced by users shows that the increase might have exceeded 50% in some cases.

    GOVT RELEASES POWER TARIFF HIKE FOR DISCOS

    GOVT RELEASES POWER TARIFF HIKE GUIDELINES FOR DISCOS As controversies trailed the purported electricity tariff hike by the Federal Government, the Nigerian Electricity Regulatory Commission has issued regulations on the procedure for tariff reviews. The latest order, signed by NERC Chairman, Sanusi Garba, stated that pursuant to the provisions of the Electricity Act 2023, the commission is obligated to review and approve a fair tariff to allow licensees to recover prudent costs and a reasonable return on capital invested in the business for the provision of electricity services. It stated that Section 116(1) of the Act provides that activities in the generation, transmission, distribution, trading, supply, system operation, and electricity distribution franchising shall be subject to tariff regulation, saying Section 116(2) further provides for the commission to develop a tariff methodology that allows licensees operating efficiently to recover the full efficient costs of their business activities, plus a reasonable return on investments by shareholders. “In exercise of the powers conferred in Section 116 of the Act, the commission has developed and adopted the Multi-Year Tariff Order Methodology as an incentive-based price regulation framework for the determination and projection of tariffs payable in the Nigerian Electricity Supply Industry,” NERC stressed that the Multi-Year Tariff Order methodology provides for a major review of electricity tariffs every five years, during which all tariff assumptions are reviewed to ensure the industry’s viability and efficiency. One year before the major tariff hike, the commission said it would issue a notice to all licensees about its intention while requesting them to submit applications for the review of tariffs supported with necessary documentation within 120 days of the notice. “The commission shall, one year before the expiration of the major tariff review order in force or as may be considered necessary, issue a notice to all licensees about its intention to commence the process for a major review of the existing tariff. The notice shall be published in three national dailies and on the website of the commission. “The Notice shall request for submission of applications for the review of tariffs supported with documentation that includes but not limited to audited financial statements, budgets, investment plans (in line with prevailing guidelines on Performance Improvement Plans), and proof of wide consultation with customers in the licensees’ service area concerning the proposed filing of the application for tariff review and any other information as deemed necessary by the commission,” the regulation stated. The regulator said an initial review of the applications shall be completed and a consultation paper developed no later than 90 days after the deadline for the submission of the applications. “The consultation paper developed by the commission shall outline the basis for the tariff review applications by the licensees including their proposals on capital investments, service improvements, new connections, loss reductions, reset of tariff assumptions if any, and possible impact on rates payable by the affected customers. NERC urges Discos to outline assets, liabilities for effective regulationNERC transfers full electricity regulatory oversight to four states“The consultation paper shall be published on the commission’s website and public notices issued soliciting comments with a timeline of 21 days for submission by stakeholders. The commission shall within 90 days from the publication of the consultation paper review all comments and schedule and conclude a Rate Case Hearing, having regard to the stakeholders’ responses to the consultation paper,” the regulation stated. It was stated that all comments and observations received from the public on the consultation paper and the Rate Case Hearing shall be examined and considered in the development of a draft tariff order for the consideration of the commission. Upon due consideration of the outcomes of the general stakeholders’ presentation and the Rate Case Hearing, the commission said it shall consider…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    SUSPEND TELECOM TARIFF HIKE – HOUSE OF REPS DIRECTS NCC, MINISTER

    • By Dons Eze
    • February 11, 2025
    • 23 views

    THEY’RE PLANNING TO ARREST, DETAIN ME – EL RUFAI RAISES ALARM

    • By Dons Eze
    • February 11, 2025
    • 29 views

    TELECOM OPERATORS INCREASE TARIFFS, FROM 2K TO 6K

    • By Dons Eze
    • February 11, 2025
    • 60 views

    FUBARA: END TO RASCALITY IS NEAR – WIKE’S CAMP REACTS TO SUPREME COURT RULING

    • By Dons Eze
    • February 11, 2025
    • 84 views

    POLICE RETIREMENT CRISIS FESTERS

    • By Dons Eze
    • February 11, 2025
    • 54 views

    FG SEEKS REVERSAL OF MOTHER TONGUE POLICY IN PRIMARY SCHOOLS

    • By Dons Eze
    • February 11, 2025
    • 52 views