The National Civil Society Council of Nigeria (NCSCN) has endorsed the recent 50% tariff increase requested by telecommunications operators and approved by the Nigerian Communications Commission (NCC), stressing that it was necessitated by economic realities.
The group told a press conference in Abuja on Monday that its members had planned to occupy the NCC headquarters in protest following the hike but were forced to shelve the idea when they discovered that inflationary factors, high foreign exchange, and high prices of electricity and diesel have put pressure on service providers’ operational costs.
The group, led by its president Blessing Akinlosote, said, “As every other local and international business depends on the same enabling factors and variables as electricity, foreign exchange, secured environment to operate and do business profitably, electricity tariff and cost of diesel have skyrocketed on the telecom service providers.”
He pointed out that the hike has become imperative to prevent a systemic collapse of the telecom business in Nigeria. Already, many companies are collapsing, and many are leaving the country due to the high cost of production.
Akinlosote added that despite the current hike, which has not happened since 2013, Nigerians still enjoy relatively one of the lowest tariffs globally. He appealed for more patience and sacrifices from Nigerians in the face of what he described as a “radical move by the government to transform the telecommunications sector.”
The group said, “The painful and bitter reality being faced by the service providers allows for this tariff adjustment,” even as it called on the Nigerian Labour Congress (NLC) to shelve its planned strike over the tariff and be more sensitive to the current realities.
He noted that insecurity and constant vandalisation of facilities and cable lines have become serious recurring threats to the continued operations and profitability of the telecom business in Nigeria.
He explained that the 50% hike is simply an upper ceiling that must not be exceeded as operators may still be driven by competition to adjust prices slightly if the electricity and the cost of diesel improve.
Therefore, he called on the federal government to declare an emergency in the Energy sector to reduce the cost of electricity, tackle inflation, and address the foreign exchange crisis, all of which would reduce the burden on Nigerians.
He said further that the NCC has issued detailed and comprehensive terms and conditions for improving services nationwide, stressing that service providers are mandated to abide by the guidelines and terms and conditions.
