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Tag: telcos

  • Telcos see expansion as next phase of development

    Telcos see expansion as next phase of development

    Telecom operators said the new year will usher in an era of expansion in business having consolidated on the gains of policy intervention the year before.

    The carriers, acting under the aegis of Association of Telecommunication Companies of Nigeria (ATCON) yesterday projected a shift in the telecom industry from consolidation in 2025 to a phase of expansion in 2026.

    Its President, Tony Emoekpere, who gave an outlook of the industry in 2026 while speaking with reporters in Lagos, said the sector is emerging in 2026, with renewed confidence, underpinned by the combined efforts of industry players, regulators, and the government to deepen digital inclusion.

    Reflecting on 2025, he described it as a year defined by careful capital discipline and stabilisation. According to him, the industry did not retreat despite economic challenges such as rising energy costs, foreign exchange volatility, import pressures on equipment, and right-of-way challenges.

    “Instead, telecom operators, tower companies, and internet service providers focused on densifying networks in high-demand corridors, transitioning to solar and hybrid energy systems to reduce diesel dependency.

    “According to data from the Nigerian Communications Commission, Nigeria crossed a landmark milestone in 2025, with broadband penetration exceeding 50 per cent,” he said.

    Mr Emoekpere said the growth was fuelled by record-high data consumption, as services such as digital payments, streaming, and cloud services became embedded in everyday life.

    He credited the NCC for playing a confidence-building role by maintaining transparent industry reporting, enforcing quality of service standards, and managing spectrum efficiency.

    Read Also: Vandalism undermines telcos’ $1b new infrastructure investment

    The ATCON boss said the regulator helped to preserve investors’ confidence. “On the policies, the Federal Ministry of Communications, Innovation, and Digital Economy, led by Bosun Tijani, advanced several strategic initiatives, which include a proposed 90,000 km open-access national fibre backbone; others are Project 774, aimed at expanding rural connectivity through the Universal Service Provision Fund, and 3 Million Technical Talent, scaling digital skills development in AI, cybersecurity, and software development.

    “If 2025 was about endurance, 2026 must be about execution, speed, and scale, driven by rising digital demand from fintech and AI workloads. The industry plans to intensify investment in data centres and last-mile broadband access,” he said.

    According to him, a critical factor for success in 2026 will be the visible enforcement of a critical national infrastructure designation for telecom assets.

    Mr Emoekpere consequently called for coordinated action to protect fibre routes and towers from infrastructure risks, alongside the harmonisation of right of way (RoW). He also underscored the need to reduce multiple taxation.

    He said that ATCON would champion an industry-led infrastructure expansion, advocate for open access networks and fair wholesale pricing, and amplify the voice of indigenous operators.

    He noted that, with regulatory stability and policy execution aligned with market realities, 2026 is set to mark a new phase of accelerated growth for Nigeria’s digital economy.

  • Vandalism undermines telcos’ $1b new infrastructure investment

    Vandalism undermines telcos’ $1b new infrastructure investment

    Nationwide deliberate telecom infrastructure vandalism is undermining the over $1 billion new investment in the sector, it was gathered at the weekend.

    This resurgent spate of wilful vandalism continued to be perpetrated in spite of President Bola Tinubu’s genuine efforts to address the menace.

    Recall the Federal Government, through the Nigerian Communications Commission (NCC) had earlier in the year approved a 50 per cent adjustment in end user tariff of telecom services.

    This gesture has improved the balance sheets of the carriers that had warned of an imminent shutdown, or at best, service rationing.

    In response to the tariff adjustment, the Executive Vice Chairman/CEO, NCC, Dr Aminu Maida, said the operators had committed over $1bilion to infrastructure expansion and upgrade. According to him, the figures of the investments was obtained from telecom equipment vendors or original equipment manufacturers (OEMs).

    These fresh investments are increasingy coming under the threat of ceasless vandalism.

    Industry sources say between May and July, 2025, multiple incidents of vandalism were recorded across cell sites in Rivers, Ogun, Osun, Imo, Kogi, Ekiti, Lagos, Federal Capital Territory, Abuja and many other states across the country.

    This development was confirmed by Gbenga Adebayo and Barr Damian Udeh, Chairman and Publicity Secretary respectively of the Association of Licensed Telecom Companies of Nigeria (ALTON).

    These acts of sabotage have significantly disrupted network services, causing widespread connectivity blackouts leading to degradation of services and severely impacting millions of subscribers across the country.

    Confirming the fresh investments in the industry, they say since the Federal Government’s decisive interventions earlier this year to support industry sustainability, operators “have committed unprecedented levels of investment in network optimisation and capacity upgrades.

    Read Also: Telcos blame poor service quality on vandalism in Rivers, Lagos, others

    “New systems are being deployed, transmission equipment modernized, power systems overhauled, and thousands of kilometers of fiber optic networks currently being laid and expanded.

    “Our industry has not seen this scale of investment in recent years. We are working round the clock to improve the quality of service nationwide and we cannot afford these setbacks,” ALTON said.

    Adebayo said the telcos are however alarmed at the frequency, intensity, and geographical spread of these incidents. States such as Delta, Rivers, Cross Rivers, Akwa Ibom, Ogun, Ondo, Edo, Lagos, Kogi, FCT, Kaduna, Niger, Osun, Kwara and Federal Capital Terrototy, Abuja have recorded the highest number of attacks on telecom infrastructure. These attacks have led to prolonged downtimes, network congestion, widespread blackouts, and degradation of service quality.

    “The affected infrastructure, primarily belong to our members, as well as other network operators and those who depend on us for connectivity. Critical components such as power cables, rectifiers, fibre optic cables, feeder cables, diesel generators, batteries, and solar systems are vandalized and stolen from active sites. These are not mere materials, but they are the backbone of our digital economy, security systems, and national communications grid,” he added.

    This vandalism continued unabated despite the fact  that telecom infrastructure has been classified as Critical National Infrastructure (CNI) under the National Security framework.

    This classification is backed by Federal Government Gazette No. 133, Volume 108, dated 17th March 2021. Vandalism, sabotage, or illegal possession of these assets is a serious criminal offense with grave consequences.

    “We are increasingly concerned about the rising market for stolen telecom equipment, such as: Power Cables, Power rectifiers, which are stolen from base station and sold into open markets; batteries which are stolen from base stations and sold for home and office inverters; solar panels that are stripped from telecom sites and resold to unsuspecting households; and diesel fuel being siphoned from sites and traded on the grey market.

    “We urge the public to be vigilant and refrain from purchasing suspicious items. If you buy stolen telecom equipment, you are not just complicit you are part of the crime.

    “We appeal to every Nigerian to please join us in the fight against the vandalization of telecom infrastructure. These assets serve us all, they enable our banking systems, security infrastructure, emergency response, education, health services, and the very platforms that power daily communication. An attack on telecom infrastructure is an attack on our economy and our security,” the telcos said.

    According to the operators, the second, recurring and deeply worrying issue is the widespread damage to underground fiber optic cables caused by road construction and related civil infrastructure projects along major highways and urban roads. These activities have led to significant service outages and financial losses.

    ALTON urged the Office of the National Security Adviser (ONSA); Inspector General of Police;  Director General, Department of State Services (DSS); and Commandant-General of the Nigeria Security and Civil Defence Corps (NSCDC) to immediately deploy the necessary resources to protect telecommunications infrastructure and prevent a total breakdown of communications across the country.

    “We commend the Nigerian Communications Commission (NCC) for its proactive efforts in safeguarding national telecom infrastructure, particularly through the creation of a dedicated reporting portal. This initiative empowers citizens to play an active role in protecting critical assets by reporting incidents of vandalism or suspicious activity via protect@ncc.gov.ng or by dialing 622.

    “Such forward-thinking measures are vital to ensuring the resilience and security of our communications network. This is a desperate and urgent hour. The industry cannot fight this battle alone,” the operators said.

    There is an urgent need for a coordinated national action by the security agencies, the government at all levels, regulators, the media, civil society, and the public for nnational security, economic stability, and digital future of the country.

  • Telcos blame poor service quality on vandalism in Rivers, Lagos, others

    Telcos blame poor service quality on vandalism in Rivers, Lagos, others

    Telecom operators yesterday raised the alarm over rising telecom infrastructure vandalism and theft across the country, saying the development posed an existential challenge to the industry.

    Acting under the aegis of Association of Licensed Telecommunications Operators of Nigeria (ALTON), they lamented that between May and July, 2025, multiple incidents of vandalism were recorded across cell sites in Rivers, Ogun, Osun, Imo, Kogi, Ekiti, Lagos, Federal Capital Territory, Abuja and many other states.

    In a statement endorsed by Gbenga Adebayo and Barr Damian Udeh, Chairman and Publicity Secretary respectively, the carriers these acts of sabotage have significantly disrupted network services, causing widespread connectivity blackouts leading to degradation of services and severely impacting millions of subscribers across the country.

    “We are alarmed at the frequency, intensity, and geographical spread of these incidents. States such as Delta, Rivers, Cross Rivers, Akwa Ibom, Ogun, Ondo, Edo, Lagos, Kogi, FCT, Kaduna, Niger, Osun, Kwara and Federal Capital Terrototy, Abuja have recorded the highest number of attacks on telecom infrastructure.

    These attacks have led to prolonged downtimes, network congestion, widespread blackouts, and degradation of service quality.

    Read Also: Are telcos ripping Nigerians off on data?

    “Since the Federal Government’s decisive interventions earlier this year to support industry sustainability, our members have committed unprecedented levels of investment in network optimization and capacity upgrades. New systems are being deployed, transmission equipment modernized, power systems overhauled, and thousands of kilometers of fiber optic networks currently being laid and expanded. Our industry has not seen this scale of investment in recent years. We are working round the clock to improve the quality of service nationwide and we cannot afford these setbacks.

    “The affected infrastructure, primarily belong to our members, as well as other network operators and those who depend on us for connectivity. Critical components such as power cables, rectifiers, fibre optic cables, feeder cables, diesel generators, batteries, and solar systems are vandalized and stolen from active sites. These are not mere materials, but they are the backbone of our digital economy, security systems, and national communications grid.

    “The public must be reminded that telecommunications infrastructure is classified as Critical National Infrastructure (CNI) under the National Security framework. This classification is backed by Federal Government Gazette No. 133, Volume 108, dated 17th March 2021. Vandalism, sabotage, or illegal possession of these assets is a serious criminal offense with grave consequences.

    “We are increasingly concerned about the rising market for stolen telecom equipment, such as: Power Cables, Power rectifiers, which are stolen from base station and sold into open markets; batteries which are stolen from base stations and sold for home and office inverters; solar panels that are stripped from telecom sites and resold to unsuspecting households; and Diesel fuel being siphoned from sites and traded on the grey market.

    “We urge the public to be vigilant and refrain from purchasing suspicious items. If you buy stolen telecom equipment, you are not just complicit you are part of the crime.

    “We appeal to every Nigerian to please join us in the fight against the vandalization of telecom infrastructure. These assets serve us all, they enable our banking systems, security infrastructure, emergency response, education, health services, and the very platforms that power daily communication. An attack on telecom infrastructure is an attack on our economy and our security,” the telcos said.

    According to the operators, the second, recurring and deeply worrying issue is the widespread damage to underground fiber optic cables caused by road construction and related civil infrastructure projects along major highways and urban roads. These activities have led to significant service outages and financial losses.

    ALTON urged the Office of the National Security Adviser (ONSA); Inspector General of Police;  Director General, Department of State Services (DSS); and Commandant-General of the Nigeria Security and Civil Defence Corps (NSCDC) to immediately deploy the necessary resources to protect telecommunications infrastructure and prevent a total breakdown of communications across the country.

    “We commend the Nigerian Communications Commission (NCC) for its proactive efforts in safeguarding national telecom infrastructure, particularly through the creation of a dedicated reporting portal. This initiative empowers citizens to play an active role in protecting critical assets by reporting incidents of vandalism or suspicious activity via protect@ncc.gov.ng or by dialing 622. Such forward-thinking measures are vital to ensuring the resilience and security of our communications network. This is a desperate and urgent hour. The industry cannot fight this battle alone. We need coordinated national action by the security agencies, the government at all levels, regulators, the media, civil society, and the public. Our national security, economic stability, and digital future depend on it,” the operators said.

  • NITRA, telcos host CNII, sustainability confab

    NITRA, telcos host CNII, sustainability confab

    Telecom operators, acting under the aegis of Association of Licensed Telecom Operators of Nigeria (ALTON) and Information Technology Reporters Association (NITRA) have partnered to host a forum to tackle the security challenges facing the telecom industry.

    This is coming on the heels of the garnt of Critical National Infrastructure (CNI) status to the sector by President Bola Tinubu.

    The two groups noted that mere declaration of the CNII order cannot guarantee infrastructure safety except certain internal and standardisation issues are first resolved by operators.

    This and other issues will be addressed at forum which will bring stakeholders together to address pertinent issues and questions begging for answers.

    Scheduled to hold at CitiHeight Hotel, Ikeja on July 30, 2025, the event, tagged: “Industry Sustainability And CNII Conference 2025 – Way Forward” will gather stakeholders to discuss the practical way forward, noting that passage of the Bill along will not achieve desired results.

    According to the organisers, questions that stakeholders will provide answers to at the event include: How do we ensure that this law is implemented to the letter? Are there areas worth looking into once more, or is the Bill perfect as it is? What are the roles of each stakeholder in the industry – Federal, States, Operators, Consumers, and other actors? Are individual telecom companies and service providers keying into the CNNI provisions, and how?

    READ ALSO: Umar unveils 38 ‘unsung June 12 heroes’ in military

    Others are:  What are the roles of regulators in ensuring public compliance to the order? How do we ensure security? What is the place of collaboration? Publicity: how much of the CNII provisions are the public aware of? And how can we sustain the growth and development of telecommunications in Nigeria?

    The Panel Discussion sessions will look into some of the questions arising from industry sustainability and CNII implementation.

    The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, telcos, security agencies, regulators, the media, infrastructure companies and decision makers in private and public firms, among other guests.

     “It is a known fact that the Critical National Information Infrastructure (CNII) is crucial to the survivability of a nation, and that the destruction or disruption of these systems and communication networks would significantly affect the economic strength, image, defense and security, government capabilities to function, and public health and safety,” NITRA statement stated.

    ALTON Chairman, Engr. Gbenga Adebayo, had in a forum stressed the importance of proper infrastructure maintenance and tech-upgraded installation to prevent vandalism and theft.

    He highlighted the widespread issue of stolen manhole covers, fibre cables and poles; community resistance to infrastructure projects; unauthorised installation of infrastructure without government approval; malicious destruction of telecom infrastructure; among other challenges to be curbed.

    Chairman of NITRA, Mr. Chike Onwuegbuchi, stressed the importance of the confab, noting that industry stakeholders needed to come around a table to broker an understanding on how to secure telecom infrastructure, standing on government’s proclamation of CNII.

    According to the General Secretary of NITRA, Mr. Chidiebere Nwankwo, the forum, which will have other industry Associations also make their inputs, will afford the public an opportunity to share their thoughts, especially as it regards the security of infrastructure in their localities.

  • Banks, telcos customers moan over high service charges

    Banks, telcos customers moan over high service charges

    Commercial banks are riding on telco platforms to rake in billions of naira from the increasing number of customers using digital banking services.  

    Most of the banks deploy several strategies, products and services under which they charge fees, far above what is specified in the guide to bank charges.

    Banks charge electronic money transfer fees,  annual debit card maintenance fees; N105 online transfer charge for every online transfer and three to five per cent processing fee for cash withdrawals above the cash-less banking limit.

    Others include text message fees; processing, management and draw-down fees for loan accounts   

     Nearly all the 70 million bank customers across the country have one complaint or the other against their banks. They are also speaking out through different platforms, including social media.

    There has also been an increase in failed transactions for customers using e-payment services to buy airtime or data. Many customers complain that they are debited for data and airtime purchases without receiving the commodities/services.

    In the past,  complaints over excessive bank charges reached new heights when the Consumer Advocacy Foundation of Nigeria (CAFON) – a not-for-profit organisation, declared March 1 as No Banking Day.

    On No Banking Day, banks’ customers speak in one voice against outrageous charges and poor customer service being rendered to them.

     Bank customers were urged not to use Automated Teller Machine (ATM) cards, log in to any online banking portal, transfer money through their phones, tablets, or laptops, make Point of Sale (PoS) payments, online payments, issue or present any cheque throughout that day.

    Read Also: IMF: banks’ profit not hurt by inflation, rate hike

    Industry statistics showed that more than 700,000 customers lodged arbitrary charges complaints against their lenders in the last six months.

    Adenike Abiola, a mobile phone subscriber, told The Nation at the weekend that she bought N2,000 airtime using her mobile banking app, but the airtime was never credited to her account after it was debited.

      “The Telco and bank have been tossing me around. No one wants to take responsibility for the transaction. The bank says it was successful and the telco says they never got the money,” she narrated.

    According to her,  no reversal   has  been  despite    several visits   to the bank and calls to the  telco  

    Writing on his Facebook page, a bank customer, Michael Adetayo, accused his lender of charging him N1,800 a dollar after he made an online purchase worth $190.96. That, according to him,   translates to N342,000, instead of N285,000 based on the N1,500 to the dollar exchange rate at the official market.

    Adetayo said: “It’s a debit card, not a credit card. So, the rate on the day of purchase should apply. After all, if the rate had been N1,800 to the dollar yesterday, my buying decision could have been way different or I could have used a different payment platform.”

    Maureen Akaeze said she had a similar experience when she bought a product from an online store, Amazon, using her debit card.  Akaeze said the deduction in naira was double the price tag of the product.

     She added that some banks now charge $10 for every withdrawal from a customer’s domiciliary account.

    Another angry customer, Yvonne Imafidon-Agarana, said: “It happened to me also. I was charged over N1,820 per dollar by one bank and when I switched to another bank’s debit card, the rate dropped to N1,801 per dollar.”

    Ignatius Abiola also complained.

     His words: “I completely corroborate this story. That’s exactly what they have done to me. I made a transaction on the 30th of December, 2024, to a foreign airline with my debit card and they charged me way above the black market rate for the same reasons.

     ‘’Last week, I also used my debit card and I had to call home to ask what was actually happening because the exchange rate from naira to dollar was alarming. They charged me N1,804 to dollar.”

    Analysts said the banks are hedging debit card transactions by keeping funds above the transaction figure in anticipation of an exchange rate increase but fear the funds are never returned to customers.

    For Onyeka Okorie, a customer of a new generation bank, everything had gone well until the day he demanded the balance of his account when he wanted to transfer N1 million to a business associate.

    “I am talking about my corporate account balance, not savings. That cannot be the balance because I made a cash deposit of N500,000 to the account two days ago,” he told the customer service officer, who for the second time, crosschecked and confirmed the account balance.

    Okafor was wrong. It was the right account except that the balance had been reduced by N40,000 after the lender took all ‘outstanding fees.’

  • Telcos to disconnect banks over N250b USSD debts

    Telcos to disconnect banks over N250b USSD debts

    Some banks risk disconnection by telecom operators over their failure to comply with a directive of the Nigerian Communications Commission (NCC) to repay the N250 billion Unstructured Supplementary Service Data (USSD) debts.

    It was learnt that the telcos have gotten the regulator’s nod to disconnect the affected Deposit Money Banks (DMBs).

    According to sources, the suspension of the USSD service is expected to last for two weeks to enable their customers migrate from their non-compliant status to the banks that are complying.

    Last year, the NCC and the Central Bank of Nigeria (CBN) issued some circulars, directing the banks to offset their debts.

    The most recent circular directed all banks to pay ₦212.5 billion – 85per cent of a ₦250 billion debt – as stipulated in a December 20 memo.

    But as at January 1, only four banks had complied with the directive, while 18 others refused to pay, giving various excuses why they were not supposed to pay the debt.

    The Nation learnt yesterday that only four of the owing banks have made substantial payments, while 18 banks have not responded adequately.

    Sources said the subscribers have two weeks to prepare for the suspension of services.

    The sources, who were emphatic, said the NCC has already approved the suspension, stressing that if nothing happens after the suspension on the part of the banks, they will be disconnected finally from the platform.

    A source said that the NCC would soon publish the list of banks that are still indebted to the telcos, since very few banks have complied with the payment directives as at December 31 last year, despite the efforts by NCC to make  the banks settle the outstanding debts by the end of last year.

    The source said that the suspension would last for only two weeks to notify bank customers who still use the USSD code for financial transactions.

    According to him, after the two weeks, telcos will completely withdraw the USSD service from errant banks.

    It was a tough decision to suspend and later withdraw the USSD service from banks that failed to clear their USSD debt.

    Read Also: Recapitalisation: Bank mergers, acquisitions loom

    But the measure became necessary to enable bank customers switch their services to other banks that have complied with the payment directive, since the outright service withdrawal will only affect debtor banks.

    The operators, it was learnt, had written off 40 per cent of the accumulated USSD debts, leaving the banks to pay 60 per cent.

    But the banks remain adamant, a situation that may have prompted NCC to give approval for the suspension and withdrawal of the USSD service.

    The memo on repayment plans came after years of delays and disputes over USSD payments, which have led to the growing debt.

    Despite regulatory interventions requiring banks to collect and remit the USSD fees since 2021, many banks have resisted. They argue that the charges are unfair and that USSD technology is outdated.

    Former CBN Governor Godwin Emefiele had described the cost incurred by telcos in putting the requisite infrastructure on which the transactions ride as “sunk cost”.

    CEO of GTCO, Segun Agbaje, said all that was needed to be done was get the price of data reduced, arguing that USSD technology had become futile.

    Agbaje had said: “If you want to charge ₦20 for the service, go ahead. But collect it yourself. Don’t come to us.”

    Similar concerns were raised by the late Group Executive of Access Bank, Herbert Wigwe, who questioned how telcos determine the fees.

    He argued that USSD is an outdated technology that will soon become obsolete.

    These sentiments, widely shared among bank execs, have contributed to the growth of the USSD debt despite previous regulatory efforts. As of November 2024, telecom operators claim banks owe ₦250 billion for USSD services.

    MTN Nigeria CEO, Karl Toriola, said the telcos would have no option but to seek the approval of the NCC to disconnect the banks from the platform.

    Chairman, Association of Licensed Telecom Companies of Nigeria (ALTON), Gbenga Adebayo, said the huge debt has a significant impact on the finances of the carriers. While he said not all the banks CEO’s were recalcitrant, adding that smaller banks were paying indicating that the big lenders such as GTBank, Access Bank and others were deliberately refusing to pay the USSD debt.

    The December 20 directive seeks to expedite debt settlement and enforce strict payment timelines. Under the new rules, banks must pay 85 per cent of new invoices within one month of receipt.

    Additionally, by January 2, banks and telecom operators must agree on a payment plan to settle 60 per cent of all outstanding invoices before using any telco’s USSD platform.

    Failure to comply with the directive will lead to sanctions, including fines, operational restrictions, or other regulatory actions designed to enforce compliance.

    There are also incentives for banks to pay on time. If banks meet specified payment milestones, the NCC will begin the transition to End-user Billing (EUB), where customers – rather than the banks – would directly pay for USSD services.

    EUB is considered the long-term solution to the payment dispute, but it would only be available to compliant parties.

  • BREAKING: Minister meets Telcos over push for telecom tariff increase

    BREAKING: Minister meets Telcos over push for telecom tariff increase

    The Minister of Communications, Innovations, and Digital Economy, Bosun Tijani, is currently meeting with representatives of telecommunications companies to discuss pressures to increase telecom tariffs in the country.

    Our correspondent gathered that representatives of major telecom companies such as MTN Nigeria, Airtel, Globacom, 9Mobile, and others were attending the meeting.

    It was learnt that the meeting, which started in the morning, featured major stakeholders and government regulatory bodies like the Nigerian Communications Commission (NCC) and the National Information Technology Development Agency (NITDA).

    Read Also: Telcos’ tariff threat

    The Telcos have recently urged the federal government to approve the increase in tariffs, which is, which is in line with current realities,, fuelled by the removal of the petrol subsidy and the floating of the naira.

    However, the government insisted, through the Nigerian Communications Commission, that the Telcos still have options to explore based on the 2013 tariff price floor currently in operation.

    Details shortly…

  • NATCOMS rejects telcos push for tariff hike

    NATCOMS rejects telcos push for tariff hike

    A group, the National Association of Telecoms Subscribers (NATCOMS), has made a sudden u-turn, outrightly rejecting moves by mobile network operators (MNOs) to hike end user telecom tariff, arguing that should the Nigerian Communications Commission (NCC) accede to their demand, it would unleash further hardships on its members.

    Recall the group, led by Chief Deolu Ogunbanjo, had in the past supported what he called marginal tariff hike that will not disrupt the industry, citing rising inflation, high energy costs and a host of other macroeconomic headwinds as reasons.

    In a statement, he said the exco of the group convened an emergency meeting on December 31, 2024 over the planned tariff hike of telecommunication services, stating that a unanimous resolution arising therefrom is the group’s total objection to any tariff hike.

    He said telecoms services are taxable services under the Value Added Tax Act. The Act was amended in 2019 by the Finance Act of that year to raise the tax rate from five per cent to 7.5per cent which was 50per cent increment and the increment has been borne by the consumers of rateable telecom services. “That increment brought about untold hardship to our members many of who have been forced to cut back on their telecom requirements.

    “As if that was not bad enough, the Federal Government got the National Assembly to enact the Finance Act of 2020. Section 37 of the Act amended Section 21 of the Customs, Excise Tariff etc. (Consolidation) Act by imposing an excise duty charge on Telecommunication Services. The then president, President Muhammadu Buhari by an order prescribed five per cent as the rate of the excise duty charge, chargeable for telecommunication services. The additional tax burden was greeted with public outcry and this association, at the prompting of our members, challenged the excise duty charge in court, in the case of Registered Trustees of National Association of Telecommunications Subscribers (NATCOMS) V MTN Nigeria Communications Limited and Others – Suit No: FHC/L/ CS / 189) 2023 on the ground of double taxation which is illegal and unconstitutional. NCC and other Federal Bodies are parties to the suit and the Federal Government as represented by the Federal Inland Revenue Service (FIRS) entered an appearance and filed processes opposing the suit. The case is now pending before Hon.  Justice Aluko, sitting at the Lagos Division of the Federal High Court, and the case is slated to come up in the court on the 13th March, 2025,” Ogunbanjo said.

    According to him, the cumulative effect of the pending suit and the public outcry prompted the Federal Government to suspend the implementation of the excise duty charge but the charge is now part of the controversial Tax Reform Bills now pending before the National Assembly.

    He said any new increment will now make telecommunication services more expensive by 40per cent in the New Year and if the controversial Tax Bills sail through, telecommunication services will now attract 12.5per cent tax rate and by then two third of Telecoms Services Subscribers would have been priced out of Telecoms Services market. This is a complete negation of the statutory duty of NCC to protect the interest of telecom services consumers.

    Read Also: PoS operators raise charges, banks ration cash

    “We are aware of the arguments of the telecom operators that there has not been any tariff increment in a decade, multiple levies slammed on them by different levels / tiers of government and the dollarization of the costs of their equipment. But if the truth be told, there are many other avenues through which the operators can generate funds to meet their rising operational costs without putting unbearable burden on their consumers.

    “The Nigerian Stock Exchange Market, for instance is a veritable avenue for the operators to raise funds to meet their costs requirements. The operators should bring part of the ownerships of their companies to their subscribers through public offers. The decision of some of the operators to keep their companies as private going concerns is against public interest and the consumers should not be made to bear the burden of such a decision,” the group said.

  • Telcos mull service shedding over rising costs

    Telcos mull service shedding over rising costs

    • ATCIS: operators not sincere

    Telecom operators have renewed calls for end user tariffs hike over rising operational cost.

    The operators under the aegis of Association of Licensed Telecommunications Operators of Nigeria (ALTON), warned of ‘service shedding’ as an alternative should they be unable to increase tariffs.

    The chairman of ALTON, Gbenga Adebayo, made this known during the ‘Stakeholders End of the Year Dinner’ at the weekend in Lagos.

    But in a swift reaction, the Association of Telephone Cable TV and Internet Subscribers of Nigeria (ATCIS), kicked against the call, urging the telcos to stop playing to the gallery.

    ATCIS President, Sina Bilesanmi, said the operators were at liberty to increase tariff within the existing price regime, adding that the fear of competition will not allow them to do so.

    Bilesanmi, who is a member, Industry Consumer Advisory Forum (ICAF), a multi-sectoral committee of public and private sector institutions that works with Nigerian Communications Commission (NCC) to improve its protection of telecoms consumers from fraud, service challenges, and other online transaction risks, said: “Currently, the operators are charging different tariffs within the band set by the NCC which they have not totally exhausted,” he said, adding that the operators are playing politics.

    The ALTON chairman said as the curtain falls on the 2024, there was need to issue an urgent and critical call to action for the future of the telecom industry

    Read Also: NCC reduces telcos’ tariff options

    He said: “If nothing is done, we might begin to see in the new year grim consequences unfolding, such as service shedding; operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected, there will be significant economic fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation.”

     “There will also be national economic disruption where key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions.”

     According to him, this is not a time for further deliberation or delayed decisions, stressing that the survival of the telecom sector demands immediate and bold reform for its sustainability.

    Adebayo said: “Our tariffs must be reviewed to reflect the economic realities of delivering telecom services at a minimum for industry sustainability. Without this, operators cannot continue to guarantee service availability.

    “I must say it again with even greater urgency that we are in the last days for the survival of this sector and if immediate and decisive action is not taken, the hope for a better 2025 will remain just that—a hope.

    “The challenges we face are not new, but they have become more acute and more threatening with this passing year. Rising operational costs, skyrocketing energy cost, the relentless pressure of inflation, volatile exchange rates, amongst other have all placed an unsustainable burden on network operators.”

    Bilesanmi said the ATCIS had sought clarification directly from the NCC on the proposed hike which he described as a wild hoax.

    He added: “The NCC has confirmed that there is no truth to claims of call charges increasing to N15.40 per minute from N11, SMS charges rising to N5.60, or 1GB of data costing N1,400 instead of N1,000.

     “Any changes in tariffs, if necessary, will follow due process and involve input from all stakeholders, including ATCIS. There is no cause for alarm.”

  • Subscribers lament poor service  by telcos

    Subscribers lament poor service  by telcos

    Telephone subscribers at the weekend cried out over  declining quality of service (QoS) by  their service providers.

    The subscribers, under the aegis of the Association of Telephone, CableTv, and Internet Subscribers of Nigeria (ATCIS-Nigeria) and National Association of Telecoms Subscribers of Nigeria (NATCOM) called on the Nigerian Communications Commission (NCC)  to stop playing the ostrich and compel   Mobile Network Operators(MNOs), also known as telcos,  to improve their service.

     But the  MNOs, who incidentally are pushing for tariff hike, said no complaint of poor service delivery had been escalated to them.

     QoS and tariff hike topped the agenda  of a meeting between the NCC, MNOs, ATCIS-Nigeria, and NATCOM on Thursday.

    NATCOM National President,  Deolu Ogunbanjo,  said the service rendered by the MNOs had become  ‘’so bad’ that subscribers now lament openly.  He added that the telcos, on their part,   complained about their constraints to expand capacity.”

    He said: “It(service delivery) has been so bad. It was one of the issues raised last Thursday but the telcos complained about their constraint to expand capacity and the need to raise tariff.”

    Ogunbanjo said he supported the demand for an increase in tariff because it was overdue.

    He, however, said an increase must be marginal in order not to asphyxiate the industry.

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      ATCIS-Nigeria President, Sina Bilesanmi, accused the NCC of pretending that everything was fine while subscribers groaned.

    He said that ATCIS-Nigeria members have not only complained about drop calls and inability to originate calls, but they are also unable to access their airtime balance after recharging.

    Bilesanmi argued that now that service quality has nosedived, there was no ground for telcos to justify any demand for a tariff increase.

     His words: “  I have been inundated with complaints about low service quality from my members.

    “ It is worrisome and the NCC is pretending that all is well. This low service quality is coming at a time when the MNOs are asking for a hike in tariff and our members were beginning to show understanding because, quite frankly, the tariff has remained the same for over a decade.

    “The operators should tell us if they have any challenges.”

    Some subscribers who spoke with The Nation complained bitterly about the services rendered by the telcos..

    Mrs E. Kokumo, a civil servant, said sometimes, the signal on her phone would ‘’simply  disappear and would need to restart the phone.’’

    “ My experience these days has been less palatable. I was wondering if it’s because of the rainy season. Sometimes, I will just open my phone to make call only to discover that there’s no signal. My husband would advise me to switch off and restart the device. But I get tired of doing this every day. “ 

    For Owolabi Michael, his pain now is disappearing data. According to him, the speed at which the data on his phone disappears is worrisome.

    “I am convinced that the request to hike tariffs by the operators is just a formality. When this revolution began, I was using N4,000 data per month. Now, N10,000 is hardly enough for three weeks. When I complained, they said I should check my apps. I disabled some apps, yet the tape continues. The NCC must rise up to the occasion and do the needful,” Owolabi said.

    Efforts to get the NCC to respond to the development proved futile as calls made to its  Director of Public Affairs, Reuben Muoka, were not picked up. WhatsApp message sent to him did not elicit a response either.