The National Association of Telecoms Subscribers (NATCOMS) has slammed the Nigerian Communications Commission (NCC) over alleged non-consultation on telecoms tariff review amid Friday’s aborted plan by the industry’s regulator to announce new prices for telecoms services in the country.
Chief Adeolu Ogunbanjo, NATCOMS President, told Technology Times exclusively on Sunday that following NCC’s aborted plan to announce new tariffs it had scheduled for Friday December 13, 2024, its leadership should urgently convene a stakeholders consultation session on the proposed price increase.
NATCOMS also asserts that the Tax Reforms Bill being considered by the National Assembly is reintroducing the 5% excise duty on the telecoms, which the telecoms consumer group says will “spell down for the Nigerian telecoms industry.”
I am sure the current NCC EVC and Chief Executive is now going to consider that. Maybe that is why he is holding his brakes not to announce it. He wants to consult with stakeholders. Otherwise, he needs to understand that we must have an input, lay your problems, and then we’ll understand, and then we can jaw jaw and then arrive at something that will be mutually-beneficial. For now, NCC shouldn’t do it without consulting the stakeholders. They’ve been doing it in the past, I’m sure that is why he’s still holding back, and that is why he’s not announced it yet. He will still consult with stakeholders.
Dr Aminu Maida, NCC’s Executive Vice Chairman/CEO had announced that the telecoms watchdog was set to release new telecoms tariffs on Friday, but the move was shelved by the nation’s telecoms regulator.
Maida, who spoke through Reuben Muoka, NCC’s spokesman, was quoted by the Voice of Nigeria (VON) and several media outlets as saying that the Commission’s plans to introduce new tariffs for the Nigerian telecoms industry on Friday “replaces the previously scheduled October 27 release date, which was postponed to allow for further stakeholder input.”
Meanwhile, the aborted announcement of new tariffs has drawn criticism from NATCOMS, the telecoms consumer rights group, which alleges that the NCC has not consulted stakeholders on the proposed telecoms tariff increase.
“My expectation is for the NCC, as the regulator of the Nigerian telecoms industry, to call a stakeholders meeting before they actually say we want to increase tariffs. You should call a stakeholders meeting. And I’m sure that is why he’s been holding on since Friday. I’m sure by this week, or perhaps next week, he should be able to convene a stakeholders meeting for us to at least jaw jaw on the way forward,” the NATCOMS President says in the interview with Technology Times.
NATCOMS: NCC should let’s jaw jaw before deciding on telecoms tariffs
Excerpt of the Technology Times interview with Chief Adeolu Ogunbanjo, National President of the National Association of Telecoms Subscribers (NATCOMS) is reproduced below:
Technology Times: the Nigerian Communications Commission NCC, previously announced that he was going to announce new telecoms tariffs for the telecommunications industry by last Friday, which was December 13, 2024. That didn’t happen. The telecoms regulator has also been silent about the non-issuance of that statement as we speak today, Sunday, the 15th of December. What is Natcoms’ reaction to this development, considering the fact that your association endorsed the proposed increase in telecoms tariff?
NATCOMS: Really, it’s not that we are endorsing it, but we are saying that, look, a stakeholders meeting should be called. Bring all your issues to the table. Like they have always been, saying, their radio equipment is dollarised.
I mean, what ensures quality services, all those things they hang on their base stations, and things are dollarised. Which, of course, affects quality of service. And then they need so much more of that. They’ve been saying that. Again, you are also privy to the fact that they’re saying they want to be load-shedding because of certain issues, of which you know, which is financial as well.
Sorry, because it’s in court, we will be writing the National Assembly this week, that, look, there is a pending case in court, and it won’t be tidy in a lawful country where, I mean, a case in court, and the National Assembly will now rule over it. So that is going to happen.
Chief Adeolu Ogunbanjo, National Association of Telecoms Subscribers (NATCOMS).
The excise duty tax shouldn’t be there, among so much, about 40 taxes in the telecoms sector. That, again, will spell doom for the telecoms sector, stakeholders as well as telecom subscribers. We will definitely not agree to this 5% excise duty tax being reintroduced again after being suspended about two years back.
Again, the two industry giants, Financial Derivatives, and the other one, they are saying that, look, telecoms needs to be attended to. It is currently in intensive care, and we all are seeing it. The quality is so bad, so awful right now. It’s affecting, you know, the banking industry through loading of our ATMs, the POSes, all the apps and all that have been affected.
Out of every 10 transactions, for instance, on the various apps, on POSes, maybe four or five will be on the first term transaction. Sometimes you are so disappointed that it doesn’t go. So you need some prayer and fasting when you want to use some of these electronic payment systems, because they use telecoms equipment.
Now, beyond that is the fact that maybe because NCC have not done a stakeholders consultation, plus the fact that the Tax Reform Bill is also having some of these tax issues. Maybe they want to study The tax reform Bill, and then know what to do, or they want to, you know, engage the stakeholders for us to at least add a word or two about it, and then set about their I mean, that is the NCC, set about whatever they now want to do on the telecoms tariff.
Technology Times: You talked about the potential impact of the Tax Reform Bill that is currently under consideration at the National Assembly. What is the relationship between the Tax Reform Bill and the telecommunications industry, for the benefit and education of Nigerians out there?
NATCOMS: I must tell you that the Tax Reform Bill is also having the 5% excise duty tax inclusive, which was suspended two three years back, which we as a body, NATCOMS, have taken to court.
Now we are saying that the cost is included in the Tax Reform Bill. They are introducing it, meaning that the suspension is lifted on that. They now want to introduce it and put it in as one of the taxes that will affect the telecoms industry.
Sorry, because it’s in court, we will be writing the National Assembly this week, that, look, there is a pending case in court, and it won’t be tidy in a lawful country where, I mean, a case in court, and the National Assembly will now rule over it. So that is going to happen.
The excise duty tax shouldn’t be there, among so much, about 40 taxes in the telecoms sector. That, again, will spell doom for the telecoms sector, stakeholders as well as telecom subscribers. We will definitely not agree to this 5% excise duty tax being reintroduced again after being suspended about two years back.
Technology Times: When you say that the introduction, or the reintroduction of the excise tax on the telecoms sector will spell doom, can you please elaborate on this? In what way will it impact either the telecoms industry or the delivery of telecom services to Nigerian subscribers?
NATCOMS: Don’t forget, the moment you buy a recharge card, it is being taxed. Now again, by the time they now introduce the 5% excise duty tax, it would mean that the operators will now look at that, and will now increase their tariff because of this 5%. It’s across the board. I mean, it will spell doom.
Again all our subscribers, that is the only thing left. Power is what is what it is. Telecoms is what now gives us joy. I mean by showcasing our various businesses on Instagram, on Facebook, on X, formerly, Twitter, WhatsApp, you can name it. For us, it is something that assists our business.
It now means that if 5% excise duty tax is now reintroduced, our costs of operation will also go up because we need to showcase our businesses on social media. I’ve elicited before now. I mean the Instagrams of this world, with the Xes, the WhatsApps and, you know, the Facebooks and all. In fact, name the radio programme or the TV programme, that is not there. I mean, so it will, it will really spell doom. And it means the prices of our services as well. It will increase our operational costs. So that is why we definitely will not want this 5% excise duty tax to be reintroduced.
Technology Times: Still back to the issue of tariff increase. The regulator usually engages with stakeholders anytime or most times it plans to undertake major telecommunications policy or regulatory mechanisms as the telecoms regulator. Are you aware of any such engagements regarding the proposed tariff increase that the NCC has announced?
NATCOMS: I am sure the current NCC EVC and Chief Executive is now going to consider that. Maybe that is why he is holding his brakes not to announce it. He wants to consult with stakeholders. Otherwise, he needs to understand that we must have an input, lay your problems, and then we’ll understand, and then we can jaw jaw and then arrive at something that will be mutually-beneficial. For now, NCC shouldn’t do it without consulting the stakeholders. They’ve been doing it in the past, I’m sure that is why he’s still holding back, and that is why he’s not announced it yet. He will still consult with stakeholders.
Technology Times: Is that to mean that NCC has not consulted the question?
NATCOMS: They have not consulted us at all.
Technology Times: So we can quote you that as a stakeholder in the telecoms industry, that you are aware that NCC has not consulted on telecom tariff increase
NATCOMS: No. They have not. Okay, they have not. And then they need to do that so that we understand the issues and concerns, and then we come to a conclusion.
Technology Times: But you’ve expressed support for tariff increase in the past. Has that position changed? Do you still think that the industry is ripe for tariff increase, or do you think that the dynamics or the operating environment conditions have changed as we speak today?
NATCOMS: Thank you very much. The operating environment has changed, and that is why we are saying, bring out your issues, your concerns, because almost every service-driven, or even products and services of some companies have increased.
However, because telecoms affect everything, call us. Yes. We will consider an increase only if you tell us your issues. Though, like I did say earlier, Uncle Bismarck Rewane in Financial Derivatives and the other consulting group have said telecoms is in ICU, ICU Intensive Care Unit, meaning that it needs a lot of them, finances to be able to give us some good quality service.
But beyond that now, they should now come out as the operators and tell us, “look, this is the issue.” The regulator should arrange that, and that is why the NCC is the impartial arbiter between the consumers, the subscribers, and the operators. So, they are the ones to come in and say, look, let’s do a jaw jaw. Call a stakeholders meeting, lay your complaints, and then we will see and we can determine the way forward.
Technology Times: On the final note, between Friday and today that we speak, the NCC is still silent on its plan to announce a tariff increase. Do you have any expectation, or what do you think the regulator should do in terms of the silence that it has continued to uphold regarding this position since Friday. What are your expectations in the coming days?
NATCOMS: My expectation is for the NCC, as the regulator of the Nigerian telecoms industry, to call a stakeholders meeting before they actually say we want to increase tariffs. You should call a stakeholders meeting. And I’m sure that is why he’s been holding on since Friday. I’m sure by this week, or perhaps next week, he should be able to convene a stakeholders meeting for us to at least jaw jaw on the way forward.
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