- Nigerian subscriber groups urged the Nigerian Communications Commission (NCC) to reverse a 50% tariff hike, proposing a more manageable 10% increase by 29th January 2025
- NATCOMS and ATCIS have criticised the NLC for protesting telecom tariff hikes, urging the union to focus on workers' welfare instead
- While the NLC calls for a telecom boycott, operators and subscriber groups stress the importance of the hike to sustain the telecom sector amidst rising operational costs
Subscriber groups in Nigeria have issued an ultimatum to the Nigerian Communications Commission (NCC), demanding the reversal of a recent 50% tariff increase to a more manageable 10% by Wednesday, 29th January 2025.
The National Association of Telecoms Subscribers (NATCOMS) and the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) have also expressed their disapproval of the Nigerian Labour Congress (NLC)’s planned protests, urging the union to focus on its core responsibility of protecting workers' welfare rather than involving itself in telecoms-related matters.
The tariff hike, which the NCC approved on January 20, 2025, has sparked widespread concern among Nigerian telecom users.
The increase marked the first adjustment since 2013 and raised the minimum cost of phone calls from N6.40 to N9.60 per minute. The decision was taken to address the growing gap between rising operational costs and revenue in the telecommunications sector.
Telecom operators initially requested a 100% tariff increase due to inflation and high operating expenses, but the NCC settled for a 50% hike.
In an interview, NATCOMS President Adeolu Ogunbanjo confirmed that the group had engaged with the NCC and were awaiting a response.
He stated, “We have made our appeals to the NCC, and we are giving them time to respond. If we don’t hear back by Wednesday, we will release a communique outlining the details of our discussions with them and take further legal action if necessary.”
Ogunbanjo stressed that telecom companies are private businesses, not government entities, and called on the NLC to focus on solutions that balance the interests of both consumers and operators.
“The NLC should not target telecom operators. They are private businesses, not government entities. We want to handle this matter in a businesslike, civil manner,” he added.
Despite mounting pressure from the NLC and other groups, Ogunbanjo acknowledged the financial strain faced by consumers but underscored that the tariff hike was necessary to prevent the collapse of the telecom industry.
The industry, vital to Nigeria’s digital economy, has faced rising costs due to inflation, exchange rate fluctuations, and significant investments required to meet growing consumer demand.
The President of ATCIS, Sina Bilesanmi, echoed Ogunbanjo’s sentiments, urging the NLC to refrain from interfering in telecoms issues.
“I have reviewed the NLC Act, and there is no provision empowering them to delve into telecom-related matters,” Bilesanmi said.
“The NLC president’s priority should remain the welfare of his union members, not matters outside their jurisdiction.”
Bilesanmi defended the association’s acceptance of the tariff hike, arguing that it was necessary to ensure the continued survival of the sector.
“A failing sector would result in job losses and widespread economic challenges,” he stated, though he maintained that improved service delivery should be a priority for telecom operators.
Meanwhile, NLC President Joseph Ajaero has vehemently criticised the Federal Government for prioritising revenue generation over the welfare of Nigerian citizens. Speaking on Arise TV, Ajaero condemned the government’s alignment with telecom companies, accusing officials of neglecting their regulatory responsibilities.
“These corporate entities will be smiling to the bank while poverty among Nigerians continues. That’s the challenge we face now,” Ajaero said.
He expressed concern that the tariff hike would disproportionately affect low-income earners who are already struggling with the rising cost of living.
“The government needs to strike a balance. For someone earning N70,000, paying over N10,000 on this tariff increase alone is significant. How will they afford transportation, housing, and other basic needs?” Ajaero argued.
The NLC has also called for a nationwide boycott of telecom services, citing the timing of the hike, which coincides with rising inflation and declining purchasing power.
Ajaero emphasised that telecom services had become a basic necessity, with the average Nigerian worker spending approximately 10% of their income on telecom charges.
“Together, we will do our best to resist this injustice and demand that the government prioritise the interests of its citizens over corporate interests,” Ajaero added.
Explore capital market funding, not 100% tariff hike, subscribers urge telcos
Meanwhile, TheRadar earlier reported that telecommunications operators were urged to explore capital market funding as a sustainable option to address rising operational costs rather than implementing a proposed 100 per cent tariff hike.
President of the National Association of Telecommunications Subscribers (NATCOMS), Adeolu Ogunbanjo, said the proposed tariff hike would impose financial strain on consumers.