Nigerians are mounting a legal challenge against the recent 50 per cent increase in call and data tariffs, with telecom subscribers and advocacy groups escalating the matter to the courts after unsuccessful engagements with the Nigerian Communications Commission (NCC).
The National Association of Telecommunications Subscribers (NATCOMS) announced plans to sue the telecom regulator on Wednesday, citing the NCC’s failure to address its demand for a reduction of the tariff hike to a more acceptable 10 per cent.
Announced last Monday, the tariff hike—the first in over a decade—has drawn widespread criticism from groups including the Socio-Economic Rights and Accountability Project (SERAP) and the Nigeria Labour Congress (NLC). These organizations argue that the increase exacerbates the country’s economic challenges, disproportionately affecting low-income households and small businesses struggling with rising inflation and a volatile financial climate.
Legal Action Looms Against NCC
Representing 157 million telecom subscribers, NATCOMS had initiated discussions via correspondence last Friday, requesting the NCC to reconsider the hike within three working days. However, the commission failed to respond.
Speaking to The PUNCH on Tuesday, NATCOMS President Adeolu Ogunbanjo revealed that consumers have been left disillusioned by the rising cost of telecom services.
“We gave them until the end of the day (Tuesday) to respond. Since we have not received any response, we are moving forward with the court process starting tomorrow (Wednesday),” Ogunbanjo stated.
The letter sent to the NCC underscored the burden the tariff increase places on subscribers, particularly those in lower-income brackets who rely on affordable communication services for daily activities.
“Our National Secretary informed us that the NCC has until 11:59 pm today (Tuesday) to respond. They can still reply through their website, which is available 24/7, but with no word from them, we are left with no choice but to proceed with legal action,” Ogunbanjo added.
As part of its legal challenge, NATCOMS is set to release a formal plea letter to the press on Wednesday.
Meanwhile, SERAP has also taken legal action, filing a lawsuit at the Federal High Court in Abuja against the government of President Bola Tinubu. The rights group described the tariff hike as “arbitrary, unconstitutional, unlawful, unfair, and unreasonable.”
In suit number FHC/ABJ/CS/111/2025, SERAP seeks a ruling on whether the NCC’s decision to approve the tariff increase violates Nigerians’ right to freedom of expression and access to information.
“The unilateral decision by the NCC to authorise telcos to hike telecom tariffs by 50 per cent is arbitrary and inconsistent with constitutional guarantees,” SERAP stated in its filing.
The lawsuit also seeks an interim injunction restraining the NCC from enforcing the tariff hike.
Justifications and Economic Realities
While telecom operators defend the tariff increase as necessary for sustaining their businesses, critics argue that the hike may not resolve underlying issues in the sector. Many telecom firms continue to grapple with volatile exchange rates and operational cost pressures, which impact long-term investments.
Several major telecom players have outlined plans to invest in network upgrades, improve coverage, and enhance service reliability to justify the increased tariffs. Industry analysts, however, caution that price adjustments alone may not address the sector’s financial challenges.
Government and Stakeholder Reactions
Despite public outcry, several government agencies and industry stakeholders, including Finance Minister Wale Edun and the Lagos Chamber of Commerce and Industry (LCCI), have backed the tariff adjustment.
The LCCI, in a statement on Monday, urged telecom operators to enhance service delivery while supporting the government’s automation efforts. Director-General Chinyere Almona called for operational cost efficiency to help businesses manage expenses.
Finance Minister Wale Edun, speaking at the 2025 World Economic Forum in Davos, Switzerland, defended the hike as a necessary measure to reflect rising inflation and operational costs accumulated over the past 12 years.
“There is a need to reflect the fact that over 12 years, there has been a rise in costs, there has been inflation, and that needs to be reflected,” Edun stated. He emphasized the importance of balancing sustainability for telecom firms while safeguarding consumer interests.
“We don’t want dropped calls. We want good quality services from them. And at the same time, we want them growing, employing people, and contributing to the country’s GDP,” he added.
Telecom Industry Response
Telecom operators argue that the adjustment is crucial for sustaining the industry. Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayor, acknowledged that many systems within the sector require upgrades.
“We are actively working on improving the cost-mile experience significantly,” Adebayor said. “No telecom operator wants to provide poor service quality. Every minute of uptime contributes to revenue, and it’s crucial that we show tangible improvements in user experience.”
MTN Nigeria’s Chief Executive Officer, Karl Toriola, described the hike as an essential step toward long-term industry sustainability.
“This tariff adjustment represents an important step towards addressing the impacts of prevailing economic challenges on our business and industry,” Toriola stated. “It will enable us to maintain the critical investments required to deliver reliable, high-quality services to Nigerians.”
As the legal battle unfolds, the spotlight remains on the NCC and telecom operators to justify the hike while ensuring improved services for Nigerian consumers.
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