SERAP Challenges NCC's 50% Telecom Tariff Hike: Legal Battle Looms

 SERAP Challenges NCC's 50% Telecom Tariff Hike: Legal Battle Looms

In a bold move that has set the stage for a legal showdown, the Socio-Economic Rights and Accountability Project (SERAP) has issued a 48-hour ultimatum to the Nigerian government and telecommunications companies, demanding the reversal of the recently approved 50% increase in telecom tariffs. 

A Controversial Decision

The Nigerian Communications Commission (NCC) recently approved a 50% tariff adjustment for telecom operators, marking the first change in rates since 2013. This decision was made in response to rising operational costs and the need to sustain the industry. 

SERAP's Standpoint

SERAP has described the tariff increase as "unlawful" and has threatened to take legal action if it is not rescinded within the stipulated timeframe. The organization argues that the hike contravenes the rights of Nigerians to affordable access to communication, as guaranteed under international human rights standards. 

Public Outcry and Economic Implications

The tariff hike has sparked widespread concern among Nigerians, many of whom rely heavily on telecommunication services for business, education, and social connectivity. With the 50% increase, the minimum price for phone calls will rise from N6.40 to N9.60 per minute, and data rates will see a significant surge, impacting data affordability for users. 

Telecom Operators' Perspective

Telecom operators have been facing a tough operating environment recently, driven by macroeconomic conditions such as naira-to-dollar volatility and inflation. Running costs have surged by over 300% in the last 18 to 24 months, making tariff adjustments necessary for the long-term sustainability of the telecom sector.

Government's Response

The NCC has emphasized that the tariff adjustment is necessary to close the widening gap between rising operational expenses and the rates charged for services. The move is expected to enable operators to invest in infrastructure and innovation, improving network quality, customer service, and coverage for consumers. 

As the deadline set by SERAP approaches, all eyes are on the Nigerian government and telecom operators to see how they will respond to the ultimatum. The outcome of this standoff could have significant implications for the telecommunications industry and its consumers in Nigeria.