Reps ask FG to suspend tariff hike approval for telcos

The house of representatives has asked the ministry of communications, innovation and digital economy to suspend the approval granted to telecommunications companies (telcos) to increase tariff by 50 percent.

The lower legislative chamber passed the resolution during plenary on Tuesday following the approval of a motion of urgent public importance.

The motion was sponsored by Oboku Oforji, a Peoples Democratic Party (PDP) lawmaker representing Yenagoa/Opokuma federal constituency of Bayelsa state.

In January, the Nigerian Communications Commission (NCC) approved telcos’ request to increase tariff since the last review in 2013.

Bosun Tijani, minister of communications, innovation and digital economy, had said “the new tariff would allow telecommunication companies to be able to invest in new infrastructure and improve connectivity”.

Moving the motion, Oforji said tariff approval is not justifiable as consumers are grappling with economic hardship and poor network service delivery.

The legislator said telcos must improve their service delivery, and address the “poor network” before increasing their tariff.

“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 said.

“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.

“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 the closure of businesses.”

Opposing the motion, Dominic Okafor from Anambra state, said a tariff hike is necessary for improved service delivery.

He said telecom companies should be allowed to raise tariffs, though not by as much as 50 percent.

The motion was adopted when it was put to a voice vote by Tajudeen Abbas, speaker of the house.

Subsequently, the house asked the ministry of digital economy and the Nigerian Communications Commissions (NCC) to “suspend the impending hike in telecommunications tariffs until their service improved”.