The Nigeria Labour Congress (NLC) has temporarily dropped its nationwide Protest plan against the recent 50% increase in Telecommunication tariffs. This decision followed a high-level meeting between the NLC and representatives of the Federal Government, including the Secretary to the Government of the Federation, Senator George Akume, and the Minister of Information and National Orientation, Mohammed Idris. The meeting aimed to address the concerns raised by the union regarding the charge increase approved by the Nigerian Communications Commission (NCC). The labour union condemned the increase as insensitive and unjustifiable, arguing that it would further burden Nigerian consumers struggling with economic challenges.
During the meeting, the Federal Government agreed to establish a broader committee to review the charge structure. This committee, comprising five government and NLC representatives, is expected to submit its findings within two weeks. The NLC President, Joe Ajaero, emphasised that the union’s next steps, including potential protests, boycotts, or service withdrawals, would depend on the outcome of the committee’s review. Meanwhile, the union had previously demanded a reduced tariff increase to 5%, citing workers and the general people’s economic hardship. However, telecom operators defended the increase, stating that sustaining service quality and network expansion was necessary amid rising operational costs.
Government and labour reach a consensus on the review process.
As a result, the Federal Government and the labour union have agreed to a collaborative approach to address the contentious ongoing issue in the sector. The newly formed committee is tasked with examining the study conducted by the NCC, which justified the 50% increase. The telecommunication commission cited factors such as inflation, foreign exchange fluctuations, and rising energy costs as reasons for the adjustment. The Minister of Information, Mohammed Idris, stated that the committee would review the findings and provide recommendations within two weeks. This development has temporarily eased tensions, as the NLC suspended its planned protest pending the committee’s report.
Similarly, the labour union had initially mobilised various sectors, including Electricity and Aviation workers and Civil Society groups, to participate in the protest. The union argued that the charge increase was a direct attack on Nigerian workers and the general public, who are already struggling with the economic impact of government policies. Yet, the sector operators maintained that the increase was essential to ensure the financial Sustainability of the industry. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, described the adjustment as a lifeline for the sector, emphasising that it was necessary to cover escalating operational costs.
Background of the story and the views of civil society groups.
Remember, in October 2024, Nigerian telecommunications companies led by MTN Nigeria, Airtel Nigeria, Globacom Limited and others proposed a 100 percent increase in Tariffs to the Nigerian Communications Commission, citing rising operational costs due to factors like Inflation and increased service delivery expenses. Subsequently, in January 2025, the NCC approved a 50 percent tariff adjustment for telecom operators, acknowledging the financial pressures faced by the industry while aiming to balance consumer interests in the country.
In a related development, the National Civil Society Council of Nigeria (NCSCN), which had initially supported the NLC’s protest, also announced the suspension of its planned demonstration. The NCSCN formed a five-man technical committee to analyse significant telecom service providers’ financial statements and operational costs extensively. The committee’s findings revealed that telecom operators had not increased tariffs since 2013 despite increased electricity, diesel, and other operational expenses. This information led the NCSCN to reconsider its position, acknowledging the challenges faced by the industry.
Related Article: MTN Nigeria proposes 100% tariff increase
Despite the backlash from the NLC and civil society groups, telecom operators ruled out any negotiations on the tariff increase. They maintained that the approved adjustment was the minimum required to sustain operations and ensure the industry’s long-term viability. Looking forward, over the next two weeks, the newly formed committee will review the NCC’s study and assess the financial realities of the industry. Its recommendations will determine the next steps for both the government and the union. The outcome of the committee’s work will also influence the NLC’s decision on whether to proceed with protests, boycotts, or service withdrawals.