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Telecom Tariff Hike Sparks Subscriber-Labour Standoff as Talks with NCC Begin

Ademola Damilola by Ademola Damilola
January 24, 2025
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Telecom Tariff Hike Sparks Subscriber-Labour Standoff as Talks with NCC Begin
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The National Association of Telecommunications Subscribers (NATCOMS) will meet with the Nigerian Communications Commission (NCC) today, seeking a reduction of the recently approved 50% telecom tariff hike to 10%. Meanwhile, the Nigeria Labour Congress (NLC) is preparing for potential protests over the increase.

The tariff hike, approved by the Federal Government after telecom operators requested a 100% increase, marks the first adjustment in over a decade. Operators argue that it is necessary to address rising operational costs caused by inflation, exchange rate volatility, and increasing infrastructure demands.

However, the hike has been met with widespread opposition. NLC President Joseph Ajaero criticized the move, calling it an additional burden on Nigerian workers already struggling with low wages. The union has threatened nationwide action, including a boycott of telecom services, if the increase is not reversed.

In contrast, NATCOMS President Adeolu Ogunbanjo disapproved of protests, emphasizing that boycotts could harm investor confidence in Nigeria’s telecom sector. Instead, NATCOMS plans to take legal action if today’s discussions with the NCC fail. Ogunbanjo urged telcos to explore alternative funding methods, such as Initial Public Offerings, to sustain their operations without exploiting consumers.

The National Association of Nigerian Students (NANS) also condemned the hike, issuing a 72-hour ultimatum to the NCC and the Ministry of Communications and Digital Economy to reverse the decision or face protests. NANS described the increase as “unjustifiable,” warning that it would deepen the digital divide and further exclude students from affordable internet access crucial for education.

NCC, Government Defend Hike

Finance Minister Wale Edun defended the tariff adjustment, stating that it reflects rising costs of operations and is essential for the sector’s sustainability. Speaking at the World Economic Forum in Davos, Switzerland, Edun emphasized the importance of balancing consumer affordability with industry growth.

Telecom operators, including MTN and Airtel, supported the hike, highlighting the need for investment in infrastructure to improve service quality. MTN CEO Karl Toriola said the adjustment ensures long-term sustainability, enabling the company to maintain critical investments. Similarly, Airtel CEO Dinesh Balsingh described the hike as essential to bridge the digital divide and expand network coverage.

Despite assurances, opposition continues to grow, with NATCOMS, NLC, and NANS leading the charge for a reversal. The NCC is expected to provide further clarity during its meeting with NATCOMS today.

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