- Labour: it is ill-timed, insensitive
- Northern groups demand immediate reversal
- It’s a good take-off point, say operators
- FCCPC to monitor compliance by service providers
A wave of opposition grew yesterday against the 50 per cent telecommunications tariff hike approved by the Nigerian Communications Commission (NCC).
Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and Coalition of Northern Groups (CNG) described it as insensitive.
They said it came at a time workers and the masses were grappling with unprecedented economic hardship.
Labour condemned the hike, saying it was a “clear assault on workers welfare and an abandonment of the people to corporate fat cats.”
TUC called it “one hike too many”, while CNG called for an immediate reversal.
But telecom operators disagreed.
They backed the 50 per cent tariff hike approved for end users of telecom services.
Mobile network operators (MNOs) hailed the approval by the NCC, saying it was a good way to start the recovery of the ailing sector.
MNOs had pushed for a 100 per cent tariff hike, citing soaring inflation, devaluation of the naira and fuel subsidy removal.
NCC approved 50 per cent, balancing affordability with sustainability.
NLC, in a statement by its President, Joe Ajaero, acknowledged the importance of telecom services in the areas of work, and access to information.
It contended that on the average Nigerian spends around 10 per cent on accessing telecom services.
“Telecommunication services are essential for daily communication, work, and access to information.
“Yet, an average Nigerian worker already spends approximately 10per cent of their wages on telecom charges.
“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 15per cent of his salary—a cost that is unsustainable.
“This hike exemplifies the government’s apparent ease in prioritisng corporate profits over citizens’ welfare.
“It is shocking that the government approved this 50 per cent tariff increase for telecom companies within a month, yet took nearly a year to approve the recent minimum wage for workers, despite the rising cost of living and inflation eroding purchasing power.
“This glaring disparity underscores a troubling reality: the government appears more aligned with the interests of wealthy corporations than with the needs of the workers and citizens it is meant to serve.
“We must ask: when will the government stand for the people it swore to protect?
“When will the National Assembly rise to its responsibility and hold the executive accountable for policies that blatantly undermine the welfare of the majority? When will the common man heave a sigh of relief in Nigeria?
“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 per cent hike.
“The NLC calls on all Nigerian workers and masses to reject this unjustifiable tariff hike.
“We urge citizens to prepare for collective action, including the possibility of a nationwide boycott of telecommunication services, to compel the reversal of this punitive increase.
“This is for our dignity, our rights, and our survival as a people.
“The NLC remains resolute in defending the interests of Nigerian workers and the masses.
“We will not allow the people to bear the brunt of policies that further entrench poverty and inequality.
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“Together, we will do our best to resist this injustice and demand that the government prioritizes the interests of its citizens over corporate interests.”
TUC President, Comrade Festus Osifo, called for a rethink.
He said: “This is one hike too many. The government should have a rethink on the spate of increase in essential services.”
CNG demands reversal
CNG rejected the hike, describing it as an assault on the already strained livelihoods of Nigerians.
The coalition emphasised that the tariff increase, introduced amidst widespread economic hardship marked by hyperinflation, unemployment, and poverty, demonstrates a lack of consideration for the plight of the average Nigerian.
In a statement, the National Coordinator, Comrade Jamilu Aliyu Charanchi, condemned the decision, calling it an act of insensitivity and economic injustice.
The coalition called on Nigerians, civil society organisations, and other stakeholders to resist the tariff hike and demand its reversal.
Charanchi said: “This decision, coming at a time when Nigerians are reeling in immense economic hardship, is nothing short of an assault on the dignity and livelihoods of the people that have been economically pauperised.
“We are appalled by the insensitivity and lack of foresight demonstrated by the NCC and the Federal Ministry of Communications in approving such an exorbitant tariff hike.
“The CNG observes that at a time when millions of Nigerians are struggling to make ends meet due to hyper-inflation, rising unemployment, and the pervasive effects of economic mismanagement, this decision is utterly indefensible.
“The NCC and the ministry leadership have proven to protect their personal interests and have become insensitive to the plight of Nigerians.
“Therefore, we call for the resignation or immediate dismissal of the Executive Vice Chairman of the NCC and the Minister of Communications for their failure to prioritise the welfare of Nigerian citizens over corporate and personal interests.”
The CNG vowed to take all necessary legal steps to protect the rights and welfare of Nigerians.
The group faulted the assertion that the decision followed “extensive consultations” with stakeholders, wondering who was consulted.
It added: “Approving this hike, we contend, the NCC has jeopardised access to communication, education, healthcare, and commerce for the average Nigerian and further expanded the frontiers of the digital divide in the country.
“We, therefore, call for the immediate suspension of the 50 per cent hike in the tariffs and recommend instead a more reasonable adjustment of a maximum of 10 per cent, which balances industry sustainability with the current economic realities in Nigeria.
“We also demand that the NCC engage in genuine, inclusive consultations with consumer advocacy groups, civil society organisations, and other grassroots stakeholders before implementing any tariff adjustments.”
MNOs: hike a welcome devt
The MNOs, under the aegis of Association of Licensed Telecom Companies of Nigeria (ALTON), welcomed the development, saying the recovery of the distressed telecom sector would now begin.
Chairman of the ALTON, Gbenga Adebayo, in a telephone conversation, hailed the decision of the NCC, describing the 50 per cent “as a good way to begin”.
Also, the Chief Executive Officer of Airtel Nigeria, Mr. Dinesh Balsingh, expressed the company’s appreciation of the decision to allow for a tariff increase.
According to him, the development underscores the regulator’s commitment to fostering sustainability and enhancing investment in the telecommunications industry for superior service delivery.
He said: “The tariff adjustment reflects a balanced approach to ensuring the sustainability of the telecommunications sector while safeguarding the interests of consumers.
“The price increase, which was highly needed for the survival and continued growth of the industry, will enable us to continue investing in network infrastructure, expanding coverage, and delivering improved products and services that meet the evolving needs of our customers.
“We are confident that this development will pave the way for even greater advancements in telecommunications services across the country.
“Our focus remains on providing exceptional customer satisfaction while contributing to the long-term sustainability of the industry.”
FCCPC cautions operators
The Federal Competition and Consumer Protection Commission (FCCPC) advised telecom consumers to report any unfair practices or concerns through its official channels to ensure effective resolution.
In a statement by Director, Corporate Affairs, Ondaje Ijagwu, it expects that tariff adjustments will “directly translate into demonstrable and tangible service enhancements for consumers”.
It vowed to monitor the impact of the tariff adjustments to ensure compliance with established regulatory standards.
The statement reads: “The FCCPC acknowledges the intense pressure faced by the NCC over the years to approve tariff increases due to the rising operational costs experienced by telecom operators, which became more pronounced in recent times.
“It is non-negotiable that telecom operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment.
“The rationale for the increase must be reflected in better services for consumers who rely on telecommunications for both personal and business purposes.
“Operators are expected to allocate increased revenues responsibly, with an emphasis on infrastructure development and service delivery improvements.
“Clear mechanisms must be established to monitor how these funds are utilised, ensuring that consumers directly benefit from the adjustments.
“Operators must also clearly communicate the rationale for the tariff adjustments to consumers.
“This includes ensuring that consumers are fully informed about the nature of the changes, their benefits, and how they align with efforts to improve service delivery and infrastructure.
“We are also pleased with the NCC’s directive to operators to ensure that, henceforth, tariffs are clear, straightforward, and free of hidden charges or complexities.”
