The House of Representatives has called on the Minister of Communications, Innovation, and Digital Economy, along with the Nigerian Communications Commission (NCC), to halt the planned increase in telecommunications tariffs until service providers enhance the quality of their services.
This resolution was made on Tuesday after a motion of urgent public importance was raised by Oboji Oforji, a PDP lawmaker representing Bayelsa.
During the debate, Oforji stressed that telecom companies must improve their service delivery before implementing any tariff increases. He warned that the proposed hike would worsen financial difficulties for Nigerians, hinder the nation’s efforts to use technology for economic growth, increase poverty, and widen social inequalities.
Quoting the Minister, Oforji explained that discussions were still ongoing regarding the tariff increase, with some telecom firms pushing for rates to rise by as much as 100 percent. However, the Minister assured that the increase would not be that high, and the NCC would determine the new tariffs before making an official announcement.
Telecom companies argue that the hike is necessary due to rising investment costs, network improvements, and the growing demand for digital services across key sectors like education, banking, and healthcare. According to industry groups such as the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), service providers have been advocating for cost-reflective tariffs for over a decade. They cite record inflation, which reached 34.6 percent in November 2024, and foreign exchange losses as factors affecting their operations.
However, the National Association of Telecoms Subscribers has rejected the proposed increase, calling it insensitive and an additional burden on consumers already struggling with economic challenges and poor network quality.
Oforji insisted that telecom companies should first address service quality issues, which Nigerians have been complaining about for years, before raising their rates. He emphasized that higher prices would further strain household finances, disrupt Nigeria’s digital economy goals, and disproportionately impact low-income families.
He pointed out that affordable connectivity is essential for key sectors like digital banking, education, healthcare, agriculture, and e-governance. Many informal workers who depend on low-cost mobile data for gig jobs could struggle to stay connected.
He also expressed concern for small businesses that rely heavily on telecommunications for operations, marketing, and customer engagement. He noted that even a 10 percent increase in telecom costs could reduce small business profitability by up to 7 percent, potentially forcing some businesses to shut down.
Supporting the motion, Billy Osawaru, an APC representative from Edo, stated that Nigerians would be willing to pay higher tariffs if service quality improved. However, he insisted that telecom companies must first justify why an increase is necessary.
Conversely, Dominic Okafor, an APGA lawmaker from Anambra, argued that telecom operators should be allowed to raise their tariffs due to the rising cost of doing business in Nigeria.
Meanwhile, some telecom operators have already begun increasing their prices, with reports indicating that some services have seen hikes of up to 200 percent.
