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Telecom Tariff Increase: NLC Suspends Protest as FG Proposes Review Panel

by Intercept Nigeria
February 4, 2025
in Business
NLC To Protest Telecom’s 50% Tariff Hike Feb 4

NLC To Protest Telecom’s 50% Tariff Hike Feb 4

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The Nigeria Labour Congress has halted its planned nationwide demonstration against the new 50 per cent rise in telecom charges approved by the Federal Government.

After meeting with government officials at the Office of the Secretary to the Government of the Federation in Abuja on Monday, the labour union called off the protest that was supposed to take place on Tuesday (today).

The Nigerian Communications Commission, the telecom regulator, had justified the 50% fee hike by pointing to increased operating costs brought on by inflation, volatile foreign exchange rates, and growing energy costs.

The regulator stated in a statement that the change was consistent with its responsibility to maintain the telecom industry’s financial viability under the Nigerian Communications Act of 2003.

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.

READ MORE: Why Ned Nwoko switched from PDP to APC

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.”

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NLC To Protest Telecom’s 50% Tariff Hike Feb 4
NLC To Protest Telecom’s 50% Tariff Hike Feb 4

“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.

ALSO READ  NLC President Blasts Governors: ‘They’ve Abandoned Their States for Abuja

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.

READ ALSO: Tinubu swears in 8 Permanent Secretaries, 18 Commissioners for RMAFC

“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.

ALSO READ  NLC President Blasts Governors: ‘They’ve Abandoned Their States for Abuja

“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.

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