Telecoms subscribers are divided in their opinions on the proposed increase in tariffs by telecoms operators. While some are in support of the increase, others disagree, saying it would further compound the economic hardship on them.
Telecoms operators have again urged the Nigerian Communications Commission to approve a 10 per cent increase in their tariffs to be able to cope with economic trends in country.
If approved, subscribers would have to pay more for calls, data, and text messages. In support of their agitation, the National Association of Telecommunications Subscribers (NATCOMS) has urged the NCC to consider the 10 per cent tariff increase to moderate the rising operational costs in the nation’s telecommunications sector.
The National President of the association, Adeolu Ogunbanjo, was quoted as saying that the tariff hike is necessary for telecom companies to sustain their operations and improve service quality.
He stated that the current economic conditions are negatively impacting telecom operators’ business, making it crucial for the regulatory agency to find a balanced solution.
He stated: “When you now look at the quality of service the telecoms companies are rendering this day, it is very poor, and they are also complaining.
Do not forget that they said their operations were getting burdensome because of the rising costs of things, such as petrol, diesel and some other things, that will make the network function appropriately.
“They are complaining. I think in the last 11 years, they have not increased their service charge, operational costs have increased but not physical like we see in petrol,” the NATCOMS chief stated.
Noting that telecoms companies have been operating under increasing financial strain due to the rising costs of essentials which are needed to power their networks, Ogunbanjo stressed that although the proposed 10 per cent tariff hike might seem significant to subscribers, it was essential for improving the overall quality of telecommunications services in Nigeria.
According to him, the moment NCC approves the marginal increase of 10 per cent, which is a lot, they will have to use it to improve services for their subscribers and subscribers will begin to enjoy improved quality of services following the increase.
However, the Association of Telephone Cable TV And Internet Subscribers of Nigeria (ATCIS) has gone against the 10 per cent increase, maintaining that it will add to the economic burden for the subscribers.
In a chat with New Telegraph, the National President of ATCIS, Hon. Sina Bilesanmi, said the proposed tariff increase should be suspended, while urging the telecoms operators to improve the quality if their services.
Bilesanmi said the subscribers were not enjoying the services of many operators even before the economic hardship set in. “The proposed 10 per cent increase is not welcome now.
If they want to increase their tariffs, they should first give us quality services, we cannot continue paying for the services we don’t enjoy. We can’t continue wasting our hard earned money on low quality services.
“We Insist that the services quality be improved on, then we can now talk on the tariffs increase,” he said. Also speaking on the five per cent excise duty reitroduced on telecoms by the Federal Government, the ATCIS boss said it should be stopped.
The Federal Government had proposed a five per cent excise duty on telecommunications services, gaming, and betting activities as part of a new bill to over haul Nigeria’s tax framework.
The bill, titled, “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters,” was dated October 4, 2024, and obtained from the National Assembly.
The proposed legislation seeks to introduce excise duties on services such as telecoms, gaming, gambling, lotteries, and betting provided in Nigeria.
Meanwhile, Bilesanmi said while the tax may be sustained on gaming, gambling, lotteries, and betting, it should have removed on telecoms, saying telecoms is essential for all people while others are optional.
“Telecoms is just like food which is essential for everyone, gaming and lottery are optional, only those who are alright do betting and lottery. We urge the government to remove the tax on telecoms,” he added.