The House of Representatives has directed the Nigerian Communications Commission (NCC) to suspend the recent 50 per cent hike in telecommunication tariffs, citing the current economic hardship in the country.
This decision followed a motion of urgent public importance sponsored by Oboku Oforji, a member of the Peoples Democratic Party from Bayelsa State, during plenary on Tuesday.
In his motion, titled “Need for the Nigerian Communications Commission Not to Approve the Impending Hike in Telecommunications Tariffs,” Oforji argued that while telecom companies justified the increase due to rising operational costs, Nigerians were already struggling to afford 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,” he said.
Oforji reminded lawmakers 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 further stated that telecom companies should prioritise improving their services before imposing higher costs on consumers.
“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.
According to him, “Affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture, and e-governance.” He added that informal workers and small businesses, which rely on affordable mobile data for their operations, marketing, and customer engagement, would suffer greatly.
“It is estimated that a 10 per cent increase in telecommunications costs would reduce small business profitability up to seven per cent, potentially leading to the closure of businesses,” Oforji stated.
However, a member of the All Progressives Grand Alliance, Dominic Okafor, justified the increment, arguing that without higher tariffs, service providers might struggle to improve service delivery.
“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 argument was opposed by Billy Osawaru, a federal lawmaker from Edo State, who insisted that service providers must first enhance 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 said.
He also criticised the country’s poor network coverage, noting, “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 adoption of the motion, the House urged the Minister of Communications, Innovation and Digital Economy, along with the NCC, to suspend the tariff hike until service delivery improves.
So far, MTN has implemented the hike across its data bundles, while SMS charges have risen to ₦6.00 per message. It remains unclear whether the decision will be reversed.
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