Tariff hike: Telecoms subscribers issue ultimatum for reversal, oppose NLC threat

Groups representing subscribers in Nigeria have set a deadline for the Nigerian Communications Commission to reduce the recent 50% tariff increase to 10% by January 29, 2025.

The National Association of Telecoms Subscribers and the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria have criticized the Nigerian Labour Congress for planning protests and urged them to focus on worker welfare instead.

While acknowledging the financial challenges posed by the tariff hike, these groups oppose the planned protest actions by the NLC, deeming them counterproductive.

The tariff adjustment, authorized by the NCC in January, is the first change since 2013 and aims to address the growing gap between operational costs and revenues in the telecommunications sector.

Telecom operators had initially requested a 100% increase but settled for a 50% adjustment after discussions with the NCC.

The President of NATCOMS, Adeolu Ogunbanjo, mentioned ongoing engagements with the NCC, expressing hope for a response in the coming week.

Regarding the tariff issue, Ogunbanjo emphasized the need to protect telcos as private entities and urged the NLC to seek solutions benefiting both consumers and operators.

Despite the tariff hike, challenges like inflation and operational costs have strained telecom companies, putting the industry’s sustainability and its role in Nigeria’s digital economy at risk.

Sina Bilesanmi, the National President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria, urged the NLC to focus on labor-related matters rather than telecom issues.

Bilesanmi stressed the importance of service quality improvement while justifying the acceptance of the 50% tariff increase to prevent industry collapse.

Government’s Role in Supporting Telcos

NLC President Joseph Ajaero criticized the government for prioritizing revenue generation over citizens’ welfare by backing the recent 50% telecom tariff increase.

Ajaero voiced concerns over the impact of the tariff hike on low-income earners and accused the government of neglecting regulatory responsibilities in favor of boosting revenue.

He advocated for a balance between corporate interests and public welfare and suggested promoting local production of essential telecom equipment to reduce costs.

Ajaero argued against justifying tariff hikes based on inflation and operational costs, stating they disproportionately affect consumers while benefiting government revenue.

NLC’s Protest Plans

Ajaero announced plans for a nationwide boycott of telecom services in protest against the tariff hike, citing concerns about rising inflation and declining purchasing power among Nigerians.

The NLC president emphasized the need to resist perceived injustices and prioritize citizens’ interests over corporate gains.