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Business & Economy

Group slams FG over approval of telecom tariffs hike

The FrontierThe FrontierJanuary 11, 2025 2381 Minutes read0

The Collective Movement (TCM), a socio-political group, has expressed displeasure with the federal government over its approval of increase in the telecommunication tariffs.

The Non-Governmental Organisation (NGO) in a virtual meeting of its national leaders held over the weekend, asked the government to reconsider its stand on the approval, reports Saturday Independent.

A statement by Mr. Edwin Nwachukwu, its Director of Media, after the meeting, said that price increases would trickle down to other sectors, such as the Small and Medium Enterprises (SMEs), which rely heavily on telecom services.

TCM noted that Nigerians were already facing economic challenges, saying that any hike in telecom tariffs at this time would further compound their woes, especially the low-income households.

The group further warned that a tariff hike would lead to inflation, declaring that telecom services were essential for businesses and individuals.

The group said: “Telecom services play an important role in connecting people, facilitating education, and providing access to essential services. A tariff hike may have negative social implications, particularly for vulnerable populations.

“The government should provide clear justification and transparency regarding the need for a tariff hike by ensuring that any increases are fair, reasonable, and in the best interest of Nigerians.”

It also said that price increases would trickle down to other sectors, such as the Small and Medium Enterprises (SMEs), which rely heavily on telecom services for daily transactions.

According to the group, increased tariffs would further widen the digital divide, as marginalised communities may struggle to afford telecom services, thereby exacerbating existing social and economic inequalities.

The group advised that rather than the government to give its approval for tariff increase, it should rather explore alternative revenue streams, such as taxing multinational tech companies operating in Nigeria or investing in infrastructure development.

It also urged the Nigerian Communications Commission (NCC) to prioritise consumer protection and ensure that telecom operators do not exploit subscribers with excessive price increases.

“Reliable and affordable telecom services are crucial for national security. A tariff hike will compromise the ability of security agencies to communicate and respond effectively to threats,” the statement added.

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