ATCIS rejects proposed telecom tariff hike

Joy Agwunobi

The Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) has firmly rejected the federal government’s proposal to raise telecom tariffs by up to 60 per cent.

This opposition comes in response to recent remarks by Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, who, in a televised interview, suggested that the proposed tariff increase would range between 30 and 60 per cent. Tijani emphasised that the goal was to balance the sector’s sustainability with the affordability of telecom services for Nigerians.

However, ATCIS has expressed concerns that this plan contradicts a previous agreement made between the Nigerian Communications Commission (NCC) and key stakeholders. The agreement, which was reached during a meeting on January 9, 2025, stipulated that stakeholders, including subscribers, would be thoroughly consulted before any tariff hikes were implemented.

Sina Bilesanmi, ATCIS’s national president, issued a press statement on behalf of the association, which represents over 220 million subscribers nationwide. He argued that the minister’s remarks disregarded the consensus reached earlier, which stipulated that no tariff adjustments would occur without comprehensive consultation and public sensitisation.

“Telecom operators and regulators must adhere to due process, including consultation with ATCIS and compliance with the NCC Act,” Bilesanmi stated. “The NCC should mandate operators to engage with ATCIS first for discussions, public enlightenment, and stakeholder involvement.”

He further advocated for public input, stressing that any tariff adjustment should reflect the collective agreement of all stakeholders.

“The process must involve public opinion, where Nigerians have the opportunity to voice their perspectives. Once there is agreement on a percentage increase, it should be communicated to the NCC for approval. Anything outside this framework is unacceptable, as subscribers bear the ultimate cost of these services,” Bilesanmi added.

The January 2025 meeting, attended by telecom operators, subscriber representatives, and the minister, outlined a clear roadmap. According to Bilesanmi, mobile network operators (MNOs), through their associations—ATCON and ALTON—were tasked with running awareness programmes to educate the public about potential tariff increases. These programmes were expected to precede any discussions with subscriber advocacy groups before final approval by the NCC.

For weeks, the federal government has been debating a tariff hike that would increase the cost of voice calls, SMS, and data. Telecom operators have argued that the increase is necessary to cover rising operational costs and maintain the sustainability of the sector.

In his interview, Tijani referenced an independent report by KPMG, stating that any decision regarding tariff adjustments must be evidence-based. He suggested that a hike should not exceed 60 per cent, to ensure the sector remains sustainable while still considering the financial burdens on Nigerian consumers. Although telecom operators have pushed for a 100 per cent  increase to stabilise the sector.

“We’ve ruled out approving a 100 per cent increase. Operators have requested this, citing sustainability concerns, but we must ensure affordability for the average Nigerian while maintaining sector growth,”Tijani said.

The minister added that telecom services drive economic growth and warned against any increase that could harm Nigerians’ access to communication services.

ATCIS strongly criticised the unilateral approach suggested by the minister, urging the government to adhere to proper regulatory frameworks. The association warned that an unbalanced tariff hike would disproportionately affect small businesses and economically vulnerable Nigerians who rely heavily on affordable telecom services.

“Small businesses will face increased costs, and subscribers already struggling with the economic effects of recent reforms will bear an additional burden,” Bilesanmi said.

He further argued that such a move could derail the government’s digital economy agenda.

“Nigeria’s digital transformation efforts will suffer if telecom costs rise significantly. Affordable communication services are essential for businesses and individuals to thrive,” he said.

Bilesanmi urged the federal government to prioritise extensive consultations with all stakeholders before approving any tariff changes. He reiterated that subscriber advocacy groups like ATCIS must play a central role in shaping decisions that directly affect Nigerians.

“The government must ensure that affordability for subscribers remains at the forefront of any discussions regarding telecom tariffs,” he added.