On February 4, 2025, the Nigeria Labour Congress (NLC) has called for a countrywide demonstration in opposition to the Nigerian Communications Commission’s (NCC) allowed 50% rise in cellular rates. This decision was adopted on January 29 at the National Administrative Council meeting of the NLC. Civil Society groups have vowed to support the demonstration, including the Take It Back Movement, the National Civil Society Council of Nigeria, and CISLAC. Although telecom operators had asked for a 100% rise, the Federal Government accepted the 50% pricing increases.
Considered callous and unreasonable, the NLC claims that the hike exacerbates the financial strain already placed on Nigerians by rising petrol prices, higher Electricity rates, and inflation. The NLC is pushing the government to undertake talks with stakeholders and demanding that the hike be immediately suspended. In the event their requests are not fulfilled, the NLC has warned further widespread protests and a telecom service boycott. A number of civil society figures have expressed support for the demonstrations and denounced the rate hike as exploitative, including Blessing Akinlosotu of NCSCN, Damilare Adenola of Take It Back Movement, and Auwal Musa Rafsanjani of CISLAC.
Industry participants and analysts have responded differently.
In order to Protest the judgement, the NCSCN has also declared its intention to picket the Federal Competition and Consumer Protection Council. Telecom firms and Trade associations, however, have resisted the demonstrations. According to ATCON, the Association of Telecommunications Companies of Nigeria, telecom operators have been under financial strain, and the tariff rise is required to preserve and enhance service quality. The NLC has come under fire from ATCON Chairman Tony Emoekpere for focussing on telecom operators while neglecting pricing hikes in other industries.
Although they support a tariff hike, the National Association of Telecommunications Subscribers (ATCIS) suggests lowering it from 50% to 10%. According to ATCIS President Sina Bilesanmi, the NLC’s objection is out of place because the decision was made after stakeholder meetings and is already final. He maintains that worker welfare, not telephone rates, should be the NLC’s main priority. Industry participants and analysts have responded differently to the Nigerian Communications Commission’s (NCC) recent approval of a 50% rise in telecommunications charges.
Increasing communication rates may have wider economic impacts.
Telecom companies have argued for this change, pointing to growing operational costs brought on by things like inflation, depreciating currencies, and increased energy costs. Profit margins in a market that is already competitive have been squeezed by the depreciation of the naira, for example, which has made it much more expensive to import machinery and pay foreign debts. In order to strike a balance between consumer affordability and industry sustainability, the NCC authorised the rate increase after taking these issues into consideration. Increasing communication rates may have wider economic repercussions, according to economists. Increased operational costs may be passed on to customers by enterprises, which could lead to inflationary pressures.
Business operations may also be strained by high telecom expenses, especially for small and medium-sized businesses (SMEs) that mainly depend on reasonably priced communication services. Additionally, consumers would spend less on other products and services to cover increased telecom costs, which could slow down the Economy as a whole. It is anticipated that different socioeconomic categories will be affected differently by the tariff increase. Because they already spend a large amount of their income on necessary services, low-income Nigerians would find the higher fees prohibitive, which could limit their access to crucial communication services. Individuals with greater incomes, on the other hand, are probably going to be able to handle the extra expenses more easily.
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Concerns regarding the digital divide growing and the economically disadvantaged’s limited access to information and services are raised by this discrepancy. There are various possible concessions that could be taken into consideration in order to lessen the negative consequences of the tariff price hike. Businesses and consumers could gradually adapt to rising costs by implementing staggered increases. For vulnerable groups, subsidy solutions for low-income customers may assist preserve access to necessary services. Furthermore, regulatory actions that support telecom industry cost-effectiveness and efficiency may assist keep expenses under control and reduce the need for additional tariff increases.