NLC halts planned 50% telecom tariff hike protest after FG’s intervention

Joshua Fagbemi
The NLC leader said the Union remains concerned about electricity tariff and the worrisome tax on workers
NLC strike
NLC

The Nigeria Labour Congress (NLC) has suspended a planned nationwide protest today over the 50 per cent telecom tariff hike instituted by the Nigerian Communications Commission (NCC). The suspension comes following a meeting with government representatives at the Office of the Secretary to the Government of the Federation in Abuja, on Monday.

After the NCC approved a 50 per cent telecom tariff increase, the labour union condemned the adjustment as insensitive and unjustifiable, arguing that it would impose an extra burden on Nigerian consumers.

The Union had urged Nigerians to prepare for a nationwide boycott of telecommunication services in protest against the increase. Following Monday’s meeting with the government, the NLC resolved to halt the demonstration pending further discussions.

According to the NLC President, Joe Ajaero, the government had made preparations to establish a larger committee to review the tariff modifications. He explained that the committee will be composed of five representatives from both sides and is expected to submit its findings within two weeks.

“We emphasized that the NLC is the largest organization in Africa, and no stakeholder consultation can exclude us and still stand. On that basis, they agreed to form a broader committee to ensure a fair and inclusive agreement to look at the entire tariff structure as a model to come out with a realistic and all-inclusive agreement,” he said.

All the details about how the 50% telecom tariff hike will affect Nigerians
Telecommunications in Nigeria

Ajaero added that the union’s next line of action and the process of engagement, including protests, boycotts, or service withdrawals, would depend on the outcome of the committee’s work.

While discussion on the tariff adjustment had intensified, the NLC leader raised the submission that the Union remains concerned about other pressing economic issues such as the worrisome tax on workers and electricity tariff.

We have also expressed our displeasure over the high electricity tariff and the unbearable tax regime, which is killing workers. These remain unresolved issues that must be addressed,” Ajaero said.

On its part, the regulator said the adjustment was in line with its mandate under the Nigerian Communications Act, 2003 to ensure the financial sustainability of the telecom sector.

In a statement signed by its Director of Public Affairs, Reuben Muoka, while announcing the hike, the NCC explained that the 50 per cent adjustment was necessary to address the widening gap between rising operational costs and stagnant tariffs.

The NCC has prioritized striking a balance between protecting telecoms consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem,” the statement read.

Similar Read: 50% tariff hike: Telecom subscribers head to court today.

NLC’s reaction to 50% telecom tariff hike

The labour union had demanded a reduction of the approved tariff to five per cent, citing a nationwide protest action if its demands were not met. The establishment was further grounded after the National Administrative Council (NAC) meeting of the NLC.

After extensive discussions, the following resolutions were reached: NAC-in-session totally rejects the 50 per cent telecom tariff hike, which it considers too harsh for citizens. It, therefore, strongly condemns the Nigerian Communications Commission’s decision to approve the increase,” the Union stated. 

telecom tariff hike

Highlighting the tariff hike’s effect, the labour union tagged it as insensitive, unjustifiable, and a direct attack on Nigerian workers and the general populace who are already suffering under worsening economic hardship caused by government policies beyond their control.

To ensure maximum impact, the NLC mobilized the electricity, aviation workers, and civil society groups for the protest.

The issue which has gained widespread attention in recent weeks saw the National Association of Telecommunications Subscribers (NATCOMS), take matters to court last Wednesday. The association’s stance supported a tariff adjustment of not more than 10 per cent.

NATCOMS said the move to take matters to court was spurred by adequate consultations with key stakeholders including subscribers, during which he cited that a marginal increase of not more than 10 per cent would have been more acceptable.

We painfully agreed that, look, a moderate or marginal five per cent to 10% increase will be fine. We do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s Gross Domestic Product,” it noted.

Amidst pressures from subscribers’ representatives and the labour union, telecom operators had explained that the adjustment was necessary to maintain service quality and support network expansion in an increasingly challenging economic environment. They also ruled out negotiations with organized labour on the tariff increase.

Number of Nigerians living without telecom services drops by 27% in 10 years

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, argued that the approved increase is vital to sustaining telecom operations amid escalating costs.

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.”


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