Telecom industry unions and various stakeholders have criticised the Nigeria Labour Congress (NLC) for its planned nationwide protest on Tuesday, February 4, 2025, against the Nigerian Communications Commission’s (NCC) approval of a 50% increase in telecommunications tariffs.
They argue that the protest is misguided and announced without consulting key players in the telecom sector.
Following extensive discussions with stakeholders, the NCC approved a tariff adjustment of up to 50%, which was significantly lower than the 100% increase proposed by telecom operators.
The Private Telecommunications and Communications Senior Staff Association of Nigeria (PTECSSAN) expressed disapproval of the NLC’s decision, stating that the labour union did not consult telecom sector unions before calling for the strike.
In a letter to the NLC leadership, PTECSSAN’s General Secretary, Okonu Abdullahi, emphasised that the tariff hike was implemented in good faith to prevent the sector from collapsing.
Despite these concerns, the NLC, in a communiqué issued after its National Administrative Council (NAC) meeting, demanded an immediate reversal of the 50% hike.
NLC President Joe Ajaero, who signed the communiqué, condemned the NCC’s decision, calling it an excessive burden on citizens.
nTariff adjustment background
The last telecom tariff increase approved by the NCC was in 2013 when Nigeria’s inflation rate stood at 8.5%.
Today, inflation has surged to 34.8%, a nearly 300% increase, prompting calls for tariff adjustments to reflect economic realities.
A senior executive at a major telecom company, who chose to remain anonymous, explained that pricing decisions should be based on a cost-based study.
According to him, the last such study was conducted in 2013, setting a price floor of N6.40 per minute and a price cap of N50.
However, he said most operators currently charge between N21 and N22 per minute, well below the maximum threshold.
Public backlash against NLC’S protest call
The planned strike has been widely criticised, with many people arguing that the economic situation makes it unsustainable to maintain old telecom rates.
Udofia Unyime said: “This strike is unnecessary. NLC should focus on more pressing issues. Telecom operators now spend over N2.5 million per month to maintain a single network mast due to rising diesel costs. Yet, for over 15 years, call rates have remained unchanged, even though maintenance costs have increased significantly.”
Similarly, Chijioke Nnebe questioned the NLC’s priorities, saying: “Labour ignored hikes in fuel, electricity, and other government-controlled prices, but now wants to protest a justified increase in telecom tariffs? This is misplaced activism.”
Legal practitioner Ayoola David added that sustaining the telecom industry should be a priority, as it plays a crucial role in economic growth.
“The last tariff hike was over a decade ago. These companies are incurring heavy losses. We need them to make major investments, pay taxes, and expand services, but that won’t happen if they can’t cover their costs,” he argued.
The Lagos Chamber of Commerce and Industry’s (LCCI) Director General, Dr Chinyere Almona, emphasised the need for telecom operators to remain competitive, stating that the sector’s high operating costs make profitability difficult.
A Daily Trust analysis found that telecom operators’ costs have surged by over 300% due to macroeconomic challenges and foreign exchange fluctuations. According to the National Bureau of Statistics, diesel prices alone rose by 64.57% year-on-year as of August 2024.
A senior NCC official defended the tariff hike, emphasising the regulator’s role in balancing consumer protection with industry sustainability.
“Our mandate includes ensuring telecom investments remain attractive while also safeguarding consumers. If inflation and rising costs make the sector unsustainable, how do we attract new investments? We must protect both consumers and operators to ensure long-term stability,” the official stated. (Daily Trust)
