50% Tariff Hike: Stakeholders Tackle FG, NCC, Telcos

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

…Tariffs In Nigeria Highest In The world – Baba Aye

…It’ll Increase Cost Of Living, Make Telcom Services Unaffordable – Utase

 

Utase Don Whyte, a public affairs ana­lyst, has expressed deep concern over the approval which the Ni­gerian Communications Commission’s (NCC) grant­ed the telecommunication companies (Telcos) for a 50 percent hike in tariffs.

Utase, who spoke to Sunday Independent at the weekend in Lagos, expressed surprise that the NCC could approve the hike given the economic hardship many Nigerians had been facing.

The NCC, it would be recalled, in a statement on January 20 an­nounced that in pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and ap­prove tariff rates and charges by telecommunications operators, it had granted approval for tariff adjustment requests by Network Operators in response to prevail­ing market conditions.

It said: “The adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustain­ability.

“These adjustments will re­main within the tariff bands stipulated in the 2013 NCC Cost Study and requests will be re­viewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews.

“It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.”

However, the approval for the hike in tariff by telecommuni­cation has attracted the anger of the Nigerian Labour Congress (NLC) which rejected it and de­clared a national protest on Feb­ruary 4, 2025.

The NLC, through a state­ment signed by NLC President, Joe Ajaero, urged the Federal Government, the NCC and the National Assembly to stop the implementation of what it de­scribed, “as ill-advised” hike to allow a reasonable conversation around it.

It stated: “NLC expresses its unequivocal condemnation of the federal government’s recent approval, through the NCC of a 50 percent increase in telecom­munication tariffs.

“This decision, coming at a time when Nigerian workers and the masses are grappling with unprecedented economic hardship, is a clear assault on their welfare and abandonment of the people to corporate fat cats.

“The NLC calls on all Nigeri­an workers and masses to reject this unjustifiable tariff hike. We urge citizens to prepare for col­lective action, including the pos­sibility of a nationwide boycott of telecommunication services, to compel the reversal of this pu­nitive increase.”

Continuing, Utase stressed that the hike would increase the cost of living, making basic communication services unaf­fordable for many.

He added: “It could also neg­atively impact businesses, edu­cation, and access to emergency services that rely on telecommu­nications.

“While telcos may argue ris­ing operational costs, the timing of this hike shows insensitive to the plight of citizens.

“The government and NCC must prioritise consumer pro­tection and explore alternative solutions to balance industry sus­tainability with public welfare.”

Baba Aye, a veteran labour activist, in his response, stated: “The 50% hike in tariffs for calls and data at this difficult time for working class people is one more burden too much.

“The rationalisation of this that it is okay because they have not raised tariffs since 2013 is be­ing disingenuous.

“Tariffs in Nigeria had always been some of the highest in the world, despite the huge turnover as a result of the population or market as they will call us.

“They have not only been making profit. They have been rolling in super profit.

“I am glad the NLC has spo­ken against the hike. But, I don’t see much coming out of the call for boycott. What should be done is to mobilise workers in their numbers to picket the NCC and telecoms firms.”

Meanwhile, the Workers’ Rights Campaign (WRC) has said it is in solidarity with the Nigeria Labour Congress (NLC) and the working-class people across the country in the rejec­tion of the 50% increase in rates of telecommunication services, such as voice call and data for internet use.

Kelvin Ayemhenre, National Coordinator, Workers’ Rights Campaign (WRC), in a statement made available to Sunday Inde­pendent, welcomed the decision reached by the National Admin­istrative Council (NAC) of the NLC on Wednesday January 29, 2025 to organise a nationwide pro­test on February 4, 2025.

Ayemhenre stated that mem­bers and supporters of the WRC would join other working people in demonstrations across several states.

The WRC described the hike in tariff as inhumane, saying the decision of the NLC to reject it was right in the light of the ever-increasing hardship the working people had been bear­ing already.

It would be recalled that the Nigerian Communication Commission (NCC) issued a statement on January 20, 2025, through which it announced its approval for the 50% hike of tariff by the telecommunication companies. information.

The regulatory body of tele­communications in the country said it would grant this tariff ad­justment based on requests by Network Operators in response to prevailing market conditions.

But, this move, the WRC, stressed was insensitive, consid­ering the severe economic hard­ship that had been forced on the Nigerian people since President Bola Tinubu’s inaugural gift on May 29 with the removal of fuel subsidy without considering the multiplier effect on every aspect of our lives.

It stressed: “It is against this backdrop that the NLC is calling on Nigerian workers to embark on a protest on February 4, 2025, rejecting this hike that will fur­ther increase the hardship and economic woes of the Nigerian people.

“The Workers Rights Cam­paign (WRC) makes bold to state that the telecoms have not only been making huge profit, they have been collecting rent on top of the profit.

“It is not true that they need to raise the tariffs to make profits. For example, MTN Nigeria de­clared a profit of over N4 billion for just Q3 2024 only, amidst this same prevailing market condi­tions.

“The Workers Rights Cam­paign, therefore, calls on work­ing class people and youths, in­cluding the unorganised in the informal economy, to come out en-masse to make our collective grievance and displeasure clear to the Nigerian state/govern­ment and Network Operators on Tuesday.

“We also urge NLC to keep the faith with action on that day and also take it beyond a one-off event.

“We must take all necessary action, including a series of demonstrations, a massive peti­tion campaign, and even strike action to push home the demands being made and which must be clear: not a kobo on telecoms ser­vices. We must dare to struggle and dare to win.”