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Telecom tariff hike: NLC halts protest as FG plans review panel

The Editor by The Editor
February 4 2025
in Business, Latest News
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#ENDSARS: Telecom operators apologize to subscribers for network outage

The Nigeria Labour Congress (NLC) has suspended its planned nationwide protest against the recent 50 per cent hike in telecom tariffs approved by the Federal Government.

The labour union aborted the planned rally scheduled for Tuesday (today) following a meeting with government representatives at the Office of the Secretary to the Government of the Federation in Abuja, on Monday.

The telecom regulator, the Nigerian Communications Commission, had defended the 50 per cent tariff increase, citing rising operational costs driven by inflation, foreign exchange fluctuations, and higher energy expenses.

In a statement, the regulator said the adjustment was in line with its mandate under the Nigerian Communications Act, 2003 to ensure the financial sustainability of the telecom sector.

However, the NLC rejected the tariff hike and demanded a reduction to five per cent, threatening a nationwide protest if its demands were not met.

It condemned the hike as insensitive and unjustifiable, arguing that it would impose an extra burden on Nigerian consumers.

The union’s president, Joe Ajaero, reiterated its demand for a significant reduction after the National Administrative Council meeting of the NLC.

He said, “After extensive discussions, the following resolutions were reached: NAC-in-session totally rejects the 50 per cent telecom tariff hike, which it considers too harsh for citizens. It, therefore, strongly condemns the Nigerian Communications Commission’s decision to approve the increase.”

“This decision is insensitive, unjustifiable, and a direct attack on Nigerian workers and the general populace, who are already suffering under worsening economic hardship caused by government policies beyond their control.”

The union called on Nigerians to prepare for a nationwide boycott of telecommunication services in protest against the increase.

Despite the union’s pressure, telecom operators remained firm that the current adjustment was necessary to maintain service quality and support network expansion in an increasingly challenging economic environment.

They ruled out negotiations with organised labour on the tariff increase, insisting that no reduction would be made despite the labour threat.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, argued that the approved increase is vital to sustaining telecom operations amid escalating costs.

“This increase is a lifeline that enables us to survive. Anything lower would be like giving someone who needs 100 litres of oxygen only a fraction—barely enough to keep them alive but insufficient for long-term survival,” he asserted.

To ensure maximum impact, the NLC mobilised the electricity, aviation workers and civil society groups for the protest.

However, following the Monday meeting, the NLC resolved to halt the demonstration pending further discussions.

Speaking to journalists after the meeting, NLC President, Ajaero, said the government had agreed to set up a larger committee to review the entire tariff structure.

According to him, the committee will be composed of five representatives from both sides and is expected to submit its findings within two weeks.

Ajaero stated, “We emphasised that the NLC is the largest organisation in Africa, and no stakeholder consultation can exclude us and still stand. On that basis, they agreed to form a broader committee to ensure a fair and inclusive agreement to look at the entire tariff structure as a model to come out with a realistic and all-inclusive agreement.

“So, the committee will be made up of five representatives, from both sides and expected to come out with a result after two weeks. That will determine the next line of action and the process of engagement.’’

He added that the union’s next steps, including protests, boycotts, or service withdrawals, would depend on the outcome of the committee’s work.

“The symbolic action of submitting the letters tomorrow (today) will be put on hold until the outcome of such a committee. The outcome of such a committee is what will determine our next line of action in terms of protest, in terms of boycott, in terms of even withdrawal of services, which are the three issues we put online,” he explained.

While the planned symbolic submission of protest letters had been put on hold, Ajaero noted that the NLC remains concerned about other pressing economic issues, including electricity tariffs and burdensome taxes on workers.

“We have also expressed our displeasure over the high electricity tariff and the unbearable tax regime, which is killing workers. These remain unresolved issues that must be addressed,” the labour leader said.

The Minister of Information and National Orientation, Mohammed Idris, said the NCC raised the tariff following a study.

He stated that the NLC agreed to look at the study to come up with its resolutions, adding that a committee of five representatives each from both sides had been instituted.

The minister said, “The crux of the matter is that there is already a study that was conducted by the NCC that led them to arrive at this 50 per cent increase. Now, we are discussing this with Labour.

“Labour has agreed that they will look at that study, and then a small committee has been set up to look at that study once again and come up with a final resolution for the consideration of government and Labour in about two weeks.

“So, the summary of it is that the Nigeria Labour Congress and the delegation of the Federal Government have set up a committee of five each.

“We are going to meet here continuously for the next two weeks, and at the end of the second week, we will now come up with a recommendation that we will give to the government and the organised Labour for final consideration.

“Both the organised Labour, the NLC particularly, and the government people have sat down here and have agreed on this position.

“So, there won’t be any protest tomorrow (today) by the Nigeria Labour Congress, and there will be some form of report that will come up in about two weeks from now to consider the study and other considerations by both parties.”

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