NLC, TUC, HURIWA oppose NCC-approved 50 percent telecoms tariff increment for MNOs

*The Nigeria Labour Congress declares its support for telecoms service providers’ approved tariff adjustments but frowns on 50 percent hike, urging subscribers to prepare for a nationwide boycott of telecoms services in protest against the Nigerian Communications Commission’s official approval for the rate of increment in the country’s digital ecosystem

Gbenga Kayode | ConsumerConnect

Sequel to the Nigerian Communications Commission’s (NCC) recent approval of a 50 percent telecoms tariff hike for the Mobile Network Operators (MNOs), the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), Human Rights Writers Association of Nigeria (HURIWA), and other interest groups have frowned on the percent of the tariff adjustment for telecoms consumers.

ConsumerConnect reports that in reaction the NCC-approved tariff hike for the MNOs, the Nigeria urged subscribers to prepare for a nationwide boycott of telecommunications services in protest the 50 percent increase in telecom tariffs in the West African country.

Similarly, the Trade Union Congress of Nigeria described the tariff increment as outrageous, lamenting that it will worsen the harsh living conditions of workers and Nigerians.

Telecoms consumers

The telecoms sector regulatory Commission Monday, January 20, 2025, announced it approved a 50 percent hike in telecoms tariffs after Telcos’ repeated agitations for cost-reflective prices in the face of harsh economic conditions in Nigeria.

Why industry regulators approve Telcos’ proposal for price hike: NCC

Expatiating on the rationale for considering and approving the 50 percent tariff increment for MNOs recently, Mr. Reuben Muoka, Director of Public Affairs (DPA) at NCC, explained in a statement that the adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account “ongoing industry reforms that will positively influence sustainability.”

The Commission noted observed that adjusting rates was aimed at addressing the gap between rising operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.

It also stated that the adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including “better network quality, enhanced customer service, and greater coverage.”

The NCC had to strike a balance between protecting telecom consumers and ensuring the industry’s sustainability, said Mouka.

Earlier, the concerned Telcos under the auspices of the Association of Licensed Telecommunications Companies of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had lamented that they were facing a shutdown due to a 300 percent rise in their operating costs in the economy.

Dr. Karl Toriola, Chief Executive Officer (CEO) of MTN Nigeria Communications Plc, late December 2024, in Lagos, had declared that the leading telecoms service provider would shut down, if tariff increases were not implemented in the telecoms space.

Though the 50 percent the NCC approved is apparently below the 100 percent rise the MNOs had earlier proposed, the rate increase has pushed the average cost of phone calls to N16.5 per minute from initial N11, the cost of 1GB of data to N431.25 from N287.5/GB, and SMS prices to N6 from N4, and that the tariff increment has come to stay, according to report.

Ajaero: NLC rejects 50 percent telecoms tariff hike

Reacting to the new tariff regime in the country’s telecoms ecosystem, Comrade Joe Ajaero, President of NLC, a statement Wednesday, January 22, condemned the tariff hike.

The Labour leader described the rate of tariff adjustment as an unjust burden on Nigerian consumers still grappling with economic challenges.

Ajaero also expressed concern over the timing of the hike, noting that it coincides with rising inflation and declining purchasing power.

The Labour unions emphasised that telecoms services now constitute a basic necessity to Nigerians.

The average Nigerian worker spends approximately 10 percent of his/her income on telecoms charges, Ajaero argued in the statement.

He further stated: “This decision, coming at a time when Nigerian workers and the masses are grappling with unprecedented economic hardship, is a clear assault on their welfare and an abandonment of the people to corporate fat cats.

“Telecommunications services are essential for daily communication, work, and access to information,” the union stated.

According to Ajaero, the average Nigerian worker already spends approximately 10 percent of his/her wages on telecom charges.

The Labour union leader noted: “For a worker earning the current Minimum Wage of N70,000, this means an increase from N7,000 to a staggering N10,500 per month or 15 percent of his salary — a cost that is unsustainable.”

NLC urges telecoms subscribers to reject tariff hike

In view of the NLC reaction to the burning issue and subsequent position on the latest upward adjustment, Ajaero urged Nigerian telecoms consumers to reject the tariff hike and prepare for collective action, including the possibility of a mass boycott of telecommunications services, to compel a reversal of the increase.

The statement reiterated: “NLC is not opposed to a tariff review but disagrees with the approved rate of increase. We therefore call on the government, the NCC and the National Assembly to stop the implementation of this ill-advised hike to allow a reasonable conversation around it.

“If the dialogue agrees on the need for the hike, then we can all seek a more humane increase and definitely not this 50 percent hike.”

HURIWA, CNG disagree with telecoms tariff hikes

Meanwhile, the Coalition of Northern Groups (CNG) has also the tray in rejecting the telecoms hike, which the coalition said was ill-timed and did not consider the plight of suffering Nigerians.

Likewise, the Human Rights Writers Association of Nigeria HURIWA, described the hike as “an illegal, unconstitutional, and oppressive policy that undermines Nigerians’ fundamental rights and freedoms.”

The Association accused the Federal Government of further impoverishing the citizens through a regulatory policy that tends to stifle freedom of expression and access to essential communication services.

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