The reverberating push by telecom operators in Nigeria to increase tariffs for calls and data services is being resisted by the Association of Telephones, Cable TV and Internet Subscribers of Nigeria (ATCIS).
ATCIS says that such a hike would have a negative impact on consumers already grappling with economic challenges.
Sina Bilesanmi, the National President of ATCIS raised this concern at a stakeholder meeting with the media on Friday and expressed deep concern over the timing of the proposed tariff increase, stating that it is insensitive to the plight of Nigerian consumers.
Bilesanmi said that despite the recent drop in inflation rate and a positive indicator in some economic sectors, the telecom industry’s contribution to GDP has declined, raising questions about the necessity of a tariff hike.
He added: “Nigerians are already facing significant financial pressures, with the inflation rate, although slightly reduced to 33.40% in July 2024, continuing to strain household budgets. In this context, any increase in telecom tariffs would disproportionately affect subscribers, many of whom are struggling to cope with the rising cost of living.”
According to Bilesanmi, ATCIS believes that it is unjust to further burden consumers who rely on these essential services for communication, education, and business activities.
He said: “The telecommunications sector has indeed contributed to Nigeria’s GDP, despite recent challenges, including a 12.60% drop in its contribution in quarter 1, 2024.
“While we acknowledge the rising operational costs faced by telecom operators, including the need for infrastructure investments, ATCIS insists that these challenges should not be used as an excuse to impose unjustified increases on consumers.”
According to Bilesanmi, ATCIS sets forth the following non-negotiable conditions that must be met before any tariff increases can be considered: improved service quality.
They include that : “There must be a substantial and verifiable improvement in service quality across the country. Subscribers continue to suffer from issues such as illegal deductions, rapid data depletion, and poor network coverage. These issues must be addressed as a priority.
“Proper consultation with consumer advocacy bodies: Any decision to raise tariffs must involve open and transparent consultations with consumer advocacy groups like ATCIS, which represents over 200 million subscribers across Nigeria. Stakeholders, including subscribers, must be given a platform to voice their concerns and contribute to decision-making processes.”
He further said telecom operators must ensure that billing practices are fair and transparent. This includes the clear presentation of tariff plans, detailed billing statements and real-time access to billing information.
He also challenged the telcos to recognise and reward loyal customers, particularly during these difficult economic times.
He said: “Subscribers should be treated with respect and their loyalty acknowledged through fair pricing and improved services.”
ATCIS then admonished the industry regulator, the Nigerian Communications Commission, (NCC) to exercise its regulatory authority to ensure full transparency in any proposed tariff increases and provide a clear justification for such increases.
It further urged the NCC to implement strict measures to guarantee that telecom companies deliver on promises of improved service quality.
It implored the regulatory body to explore alternative solutions that balance the needs of the telecom industry with the affordability concerns of consumers.
