Telecom Tariff Hike: Subscribers to meet NCC today as Labour prepares for showdown

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The National Association of Telecommunications Subscribers (NATCOMS) is set to engage the Nigerian Communications Commission (NCC) on Friday to push for a reduction in the recently approved 50% telecom tariff hike to 10%. Meanwhile, the Nigeria Labour Congress (NLC) is mobilizing for protests against the hike.

The Federal Government had approved the 50% increase after operators initially sought a 100% adjustment. Subscribers are advocating for a more moderate 10% increase and, failing a resolution, plan to file a lawsuit next week to challenge the decision.

This tariff hike, the first in over a decade, aims to revitalize the struggling telecom sector, which contributes approximately 14% to Nigeria’s GDP.

telecoms

The NLC has warned of potential collective action, including a nationwide boycott of telecom services, to pressure the government and NCC into reversing the decision.

Subscribers’ Perspective

NATCOMS President Adeolu Ogunbanjo emphasized the importance of legal action over protests, stating, “Going to court is the civil way of doing things, not boycotting telecom services.” Ogunbanjo expressed concern that such actions could harm investor confidence, particularly as the government seeks to attract foreign investment.

We are not backing the NLC at all. It will send the wrong signals to investors. These are private businesses, and President Bola Tinubu is working hard to woo investors. Protests will only harm the economy,” he said.

Ogunbanjo called for telecom operators to explore alternative funding sources, such as Initial Public Offerings (IPOs), to raise capital without overburdening subscribers.

Labour’s Stance

The NLC’s Public Relations Officer, Benson Upah, urged Nigerians to engage in peaceful protests against the tariff hike, emphasizing the importance of organized resistance. “The citizens have a right to protest policies they find unacceptable. Peaceful demonstrations are a powerful way to make their voices heard,” he stated.

Upah called on Nigerians to boycott telecom services if necessary and warned that the NLC is prepared to lead a nationwide movement to reverse the tariff hike.

Student Union Reacts

The National Association of Nigerian Students (NANS) has also rejected the tariff hike, labeling it “inconsiderate and unjustifiable.” NANS issued a 72-hour ultimatum to the NCC and the Ministry of Communications and Digital Economy to reverse the hike or face nationwide protests.

In a statement, NANS warned that the tariff increase would worsen the economic hardships faced by students and deepen the digital divide, particularly in education. The union urged the NCC to explore alternative solutions that prioritize affordability and accessibility.

Telecom Operators and Government Response

Nigeria’s Minister of Finance, Wale Edun, defended the tariff hike, describing it as essential for sustaining the telecom sector amid rising operational costs and inflation. Speaking at the World Economic Forum in Davos, Edun noted that the hike would support improved service delivery and investment in infrastructure.

Telecom operators, including MTN and Airtel, have also backed the tariff adjustment, emphasizing that it is necessary for the sector’s sustainability. MTN CEO Karl Toriola and Airtel CEO Dinesh Balsingh stated that the increase would enable investments in infrastructure and innovation, ultimately improving service quality for consumers.

As the debate continues, the telecom industry remains under scrutiny, with stakeholders pushing for a balance between sustainability, affordability, and quality service delivery.

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