Subscriber groups have issued an ultimatum to the Nigerian Communications Commission, demanding the reversal of the 50 per cent tariff hike to 10 per cent by Wednesday, January 29, 2025.
The National Association of Telecoms Subscribers and the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria have also criticised the Nigerian Labour Congress for its planned protest, urging the union to focus on its core mandate of protecting workers’ welfare.
While both advocacy groups recognise the financial burden posed by the tariff hike, particularly given the prevailing economic difficulties in the country, they oppose the NLC’s proposed protest actions, describing them as counterproductive.
The tariff increase, approved by the NCC on January 20, marked the first adjustment since 2013.
It raised the minimum cost of phone calls from N6.40 to N9.60 per minute, with the aim of addressing the widening gap between rising operational costs and revenues in the telecoms sector.
Telecoms operators had initially pushed for a 100 per cent hike, citing inflation and high operating expenses, but the NCC settled for a 50 per cent adjustment.
Speaking with Saturday TheNigerian on Friday, NATCOMS, President Adeolu Ogunbanjo, disclosed that there had been an engagement with the NCC as he hoped the regulator would respond next week.
“We have made our appeals to the NCC, and we are giving them time to respond. We prefer not to involve the press just yet, but if we don’t hear back from them by Wednesday, we will release a communique outlining the details of our discussions with them and start filing our lawsuit.
“Our engagement with the NCC has been centred on asking them to bring the tariff down to our desired 10 per cent. However, we won’t disclose the contents of our letter or the specifics of our discussions unless we don’t receive a favourable response by Wednesday. If that happens, we will pursue the matter in a civil manner, potentially taking legal action,” he stated.
According to Ogunbanjo, telcos are private businesses that must be protected.
He, however, urged the NLC to pursue solutions that would balance the interests of both consumers and operators.
“The NLC should not target the telecom operators —they are not a government agency. These are private businesses, not government entities subject to shenanigans. We want to handle this matter in a businesslike, civil manner,” he added.
Phone call and messaging tariffs have remained static despite operators grappling with rising operational costs driven by inflation, exchange rate fluctuations, and the heavy investments required to meet growing consumer demand.
These mounting challenges have placed immense financial pressure on the telecommunications industry, threatening its sustainability and its critical role in supporting Nigeria’s digital economy.
The National President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria, Sina Bilesanmi, urged the NLC president to focus on labour matters and 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,” he told The TheNigerian.
Bilesanmi noted that various advocacy groups, including his association, were already addressing consumer concerns within the telecommunications sector.
“We have been actively fighting for the rights of subscribers and ensuring their interests are protected,” he added.
Defending the association’s acceptance of the recent 50 per cent tariff hike, Bilesanmi explained that the decision was made to prevent the collapse of the telecom industry.
“We supported the increase because we want the industry to survive. A failing sector would result in job losses and widespread economic challenges,” he said.
However, he stressed that the association remained firm in its demand for improved service delivery.
Govt supporting telcos for revenue
Meanwhile, the NLC President, Joseph Ajaero, accused the Federal Government of prioritising revenue generation over the welfare of citizens by supporting the recent 50 per cent increase in telecommunications tariffs.
Speaking on Arise TV on Friday, Ajaero criticised the government for aligning with telecom companies while Nigerians grappled with the rising cost of living.
Ajaero, who leads a workforce earning less than $50 as minimum wage, expressed concern that the government was neglecting its regulatory responsibilities and acting as though private telecom companies were public enterprises.
He said, “These corporate entities will be smiling to the bank while poverty among Nigerians continues. That’s the challenge we face now. We hear the minister speaking as if these are government-owned businesses.
“When you increase tariffs by 50 per cent, aside from the taxes the government may collect, it’s seen as a way to boost government revenue. This has been the same approach even in the power sector.”
He warned that the tariff increase would disproportionately affect low-income earners, many of whom already struggled to cover basic living expenses.
“Government officials often say that higher tariffs are good, but this only pushes the people further down the poverty line. This is where we disagree. The government has not acted as a proper regulator to strike a balance between corporate interests and the welfare of the people.
“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? It’s not realistic because, in reality, there’s no housing that costs N10,000, and transportation costs are equally high,” Ajaero said.
The NLC president also criticised the government’s reliance on imported telecom and power equipment, arguing that local production of essential components like cables and meters could reduce costs.
He urged the government to encourage local manufacturing rather than passing the cost of importation onto consumers.
Ajaero criticized officials who defend the tariff hike on the grounds of inflation and operational costs, describing their arguments as a pretext to boost government revenue while neglecting the plight of Nigerians.
NLC planned protests
In a statement on Wednesday, Ajaero urged Nigerians to prepare for a nationwide boycott of telecoms services in protest against the planned hike.
The labour union expressed concern over the timing of the hike, saying it coincided with rising inflation and declining purchasing power.
The NLC president stated that telecom services had become a basic necessity, with the average Nigerian worker spending approximately 10 per cent 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,” he said.
