BUSINESS NIGERIA

Nigeria Wallstreet Journal

Telecom Tariff Hike: Labour Suspends Nationwide Protest Amid Government Talks

The Nigeria Labour Congress (NLC) has suspended its planned nationwide protest against the recent 50% hike in telecom tariffs approved by the Federal Government, following a crucial meeting with officials in Abuja on Monday.

The regulatory body, the Nigerian Communications Commission (NCC), defended the price adjustment, attributing it to rising operational costs driven by inflation, foreign exchange fluctuations, and escalating energy expenses. The commission asserted that the increase was in line with its statutory duty under the Nigerian Communications Act, 2003, to safeguard the financial viability of the sector.

However, the NLC fiercely opposed the move, demanding a reduction to 5% and threatening a nationwide boycott if its demands were not met. Describing the hike as “insensitive and unjustifiable,” the union warned that it would impose an undue burden on consumers already grappling with economic hardship.

Labour Stands Firm Against Tariff Hike

Speaking after a National Administrative Council meeting, NLC President Joe Ajaero condemned the increase and reaffirmed the union’s position. “The NAC-in-session totally rejects the 50% telecom tariff hike, which it considers too harsh for citizens. This decision is insensitive, unjustifiable, and a direct attack on Nigerian workers and the general populace already suffering from worsening economic conditions,” Ajaero said.

The union had initially mobilised electricity and aviation workers, alongside civil society groups, in preparation for a large-scale protest. However, following Monday’s discussions, the demonstration was placed on hold, with the government agreeing to establish a joint committee to reassess the entire tariff structure.

According to Ajaero, the committee, consisting of five representatives from both government and labour, is expected to deliver its recommendations within two weeks. “No stakeholder consultation can exclude us and still stand. Based on this, they agreed to a broader review that ensures a fair and inclusive agreement,” he stated.

Ajaero emphasised that the outcome of the committee’s work would determine the union’s next course of action, which could still include protests, boycotts, or even service withdrawals.

Telecom Operators Defend Increase

Despite pressure from the NLC, telecom operators have remained resolute, insisting that the price hike is essential for sustaining network quality and expansion. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, likened the adjustment to a necessary life-support measure. “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 said.

Government Scrutiny and Civil Society Intervention

The Minister of Information and National Orientation, Mohammed Idris, disclosed that the NCC’s decision followed a comprehensive study, which will now be reviewed by the newly formed committee. “Labour has agreed to examine this study, and a small committee has been set up to reassess the findings. We expect a final resolution within two weeks,” he said.

Meanwhile, the National Civil Society Council of Nigeria (NCSCN), which initially backed the protest, has also suspended its planned demonstrations after a high-level meeting with the NCC. Following a four-hour engagement, an 11-member delegation from the Council opted for further investigation, setting up a five-man technical team to conduct a forensic assessment of telecom service providers’ operational costs and financial records.

According to NCSCN Executive Director Blessing Akinlosotu, the findings have prompted a reconsideration of their stance. “We initially approached the meeting prepared for a showdown. However, after reviewing economic assessments and operational data, we realised the need for a more nuanced approach,” he said.

Their forensic review revealed that telecom operators had not raised tariffs since 2013, despite soaring costs of electricity and diesel, which have significantly impacted their operations.

Awaiting the Verdict

Despite the ongoing dialogue, concerns remain over the broader economic pressures facing Nigerian workers, including high electricity tariffs and burdensome taxation. “We have also expressed our displeasure over the high electricity tariff and the unbearable tax regime, which is crippling workers. These remain unresolved issues that must be addressed,” Ajaero added.

With the committee set to present its findings in two weeks, the country waits to see whether the labour movement will accept the outcome or return to the streets in protest.

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