The House of Representatives has called on the Federal Government to halt the planned increase in tariffs.

Reported by Ilesanmi Ifeoluwa D

The House of Representatives on Tuesday urged the Minister of Communications, Innovation, and Digital Economy and the Nigerian Communications Commission to delay the upcoming increase in telecommunications tariffs until the quality of services provided by telecom companies improves.

This was in response to a motion of urgent public importance sponsored by Oboji Oforji (PDP, Bayelsa), addressing the need to stop the recent increase in tariffs imposed by telecom companies.

In leading the debate on the motion, Oforji recalled the announcement made by Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, that telecommunication tariffs will soon increase.

"The Minister stated that consultations are still ongoing, as some companies have requested tariff increases of up to 100 percent. However, he clarified that the increase would not be as high as 100 percent. The Nigerian Communications Commission will review and approve the new tariffs, which will be announced in due course.

"The argument of the telecommunications companies justifys the price hike by citing investment costs, improved network quality, and rising demand for digital services in sectors like education, banking, and healthcare. telecommunications companies for the hike includes the cost of investment, better networks, and increasing demand for digital services across sectors such as education, banking, and healthcare, amongst others.

"The telecommunications companies have been advocating for a rate increase for the past eleven years, as reported by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON).

"They argued that telecommunications companies need cost-reflective tariffs due to the challenging economic reality of record inflation at 34.6 percent in November 2024 and losses stemming from foreign exchange fluctuations.

According to the Nation, "The National Association of Telecoms Subscribers has rejected the proposed increase in tariffs, describing it as insensitive and a further burden on consumers already grappling with economic hardship and poor network service delivery.

"It is imperative that the telecommunications companies improve on their service delivery (poor network), which Nigerians have been yearning for in years, before embarking on the increase in their tariffs.

"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.

"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.

"Saddened that 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.

Supporting the motion, Billy Osawaru (APC, Edo) stated that there is no reason for Nigerians to continue suffering whenever issues arise. He added that Nigerians would be willing to pay increased tariffs if they received effective services in return.

He said, "In the developed world, people expect to pay for high-quality services. However, the services provided by telecom companies in Nigeria are often ineffective, leading many individuals to carry two phones wherever they go.

“We are not saying tariffs should not be increased. But that should not be now. They should first show us why they want to increase their tariff. So, this planner increase should wait.”.

However, Dominick Okafor (APGA, Anambra) stated that telecommunication operators should be allowed to increase their tariffs to provide effective services, as the cost of doing business in the country has significantly increased.