Telecom subscribers have issued an ultimatum to the Nigerian Communications Commission (NCC), demanding a reversal of the 50% tariff hike to just 10% by Wednesday, January 29, 2025.
The National Association of Telecom Subscribers (NATCOMS) and the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria have also criticized the Nigerian Labour Congress (NLC) for planning a protest. The advocacy groups urge the NLC to focus on its core mission of safeguarding workers’ welfare.
While both groups acknowledge the financial strain caused by the tariff hike, especially amid Nigeria’s economic challenges, they oppose the NLC’s planned protest actions, calling them counterproductive.
Tariff Hike: First Adjustment in Over a Decade
The tariff hike, approved by the NCC on January 20, marks the first tariff adjustment since 2013. It increased the minimum cost of phone calls from ₦6.40 to ₦9.60 per minute, intending to bridge the growing gap between rising operational costs and revenues in the telecoms sector.
Telecom operators had initially requested a 100% increase, citing inflation and high operational costs. However, the NCC settled for a 50% increase instead.
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NATCOMS President Responds to Tariff Hike Concerns
In a conversation with journalists Friday, NATCOMS President Adeolu Ogunbanjo revealed that the group had engaged with the NCC. He expressed hope that the regulator would provide a response soon. “We have made our appeals to the NCC, and we are giving them time to respond. If we don’t hear back by Wednesday, we will issue a communique and consider legal action,” Ogunbanjo explained.
He also emphasized that telecom companies are private businesses, not government agencies, and urged the NLC to focus on finding solutions that balance both consumer and operator interests.
Tariff Hike Debate: Protecting Telecoms Amid Economic Strain
Phone call and messaging tariffs have remained stagnant for years despite rising operational costs from inflation, exchange rate fluctuations, and heavy investments to meet the increasing demand for services. These growing financial pressures threaten the sustainability of the telecom sector, which plays a critical role in Nigeria’s digital economy.
Sina Bilesanmi, the National President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria, urged the NLC president to remain focused on labour issues rather than interfering in telecoms matters. “I have reviewed the NLC Act, and it does not authorize them to handle telecom-related concerns,” Bilesanmi stated.
He further defended the acceptance of the 50% tariff hike by his association, explaining that it was necessary to keep the telecom industry from collapsing. “We supported the increase because we want the industry to survive. A failing sector would lead to job losses and economic instability,” Bilesanmi added.
NLC President Criticizes Tariff Hike and Government Support for Telecoms
NLC President Joseph Ajaero accused the Federal Government of prioritizing revenue generation over citizens’ welfare by supporting the 50% tariff hike. Speaking on Arise TV, Ajaero criticized the government for aligning with telecom companies while Nigerians struggle with the rising cost of living. “These corporate entities will be smiling to the bank while Nigerians continue to suffer,” Ajaero said.
The NLC president argued that the government was neglecting its regulatory responsibilities and treating private telecom companies as public entities. “When you increase tariffs by 50%, it’s not just about taxes—it’s a way to boost government revenue, as seen in the power sector,” he stated.
Ajaero also warned that the tariff hike would disproportionately affect low-income earners, many of whom already struggle to afford basic living expenses. “For someone earning ₦70,000, paying over ₦10,000 on this tariff increase alone is a significant burden. How will they afford transportation, housing, and other basic needs?” Ajaero questioned.
NLC Criticizes Government’s Reliance on Imports, Urges Local Production
Ajaero further criticized the government’s reliance on imported telecom and power equipment, urging the government to promote local manufacturing of essential components like cables and meters to reduce costs. “We need to encourage local production rather than pass on the cost of importation to consumers,” he emphasized.
He dismissed the arguments of officials defending the tariff hike based on inflation and operational costs, calling them a pretext for boosting government revenue while ignoring the struggles of Nigerians.
NLC Plans National Protest Against Tariff Hike
In a statement issued Wednesday, Ajaero called for a nationwide boycott of telecom services in protest against the tariff hike. He criticized the timing of the increase, noting that it coincides with rising inflation and the shrinking purchasing power of Nigerians.
“The average Nigerian worker now spends about 10% of their income on telecom charges,” Ajaero said. “We will resist this injustice and demand that the government prioritize the people’s welfare over corporate interests.”
