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Telecom subscriber groups call on NCC to reverse 50% tariff increase, oppose NLC protest
Subscriber groups have issued a stern warning to the Nigerian Communications Commission (NCC), demanding the reversal of the 50% tariff hike to a more manageable 10% by Wednesday, January 29.
The National Association of Telecoms Subscribers (NATCOMS) and the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) have also voiced their disapproval of the Nigerian Labour Congress (NLC)’s planned protest.
They have called on the NLC to focus on its primary role of safeguarding workers’ welfare, instead of engaging in actions they believe could prove counterproductive.
While both advocacy groups acknowledge the financial strain the tariff hike will impose, especially given the current economic challenges facing the nation, they oppose the NLC’s protest plans, seeing them as unhelpful.
The tariff increase, which was approved by the NCC on Monday, January 20, is the first adjustment since 2013.
It raised the minimum cost of phone calls from N6.40 to N9.60 per minute, aimed at bridging the gap between rising operational costs and telecom sector revenues.
Telecom operators had initially requested a 100% increase, citing inflation and escalating operational costs.
However, the NCC decided on a more moderate 50% hike.
On Friday, January 24, NATCOMS President Adeolu Ogunbanjo revealed that the NCC had engaged in discussions on the matter and expressed hope that the regulator would provide a response by next week.
“We have made our appeals to the NCC, and we are giving them time to respond. We prefer not to involve the press just yet, but if we don’t hear back from them by Wednesday, we will release a communique outlining the details of our discussions with them and start filing our lawsuit,” Ogunbanjo said.
“Our engagement with the NCC has been centred on asking them to bring the tariff down to our desired 10 per cent. However, we won’t disclose the contents of our letter or the specifics of our discussions unless we don’t receive a favourable response by Wednesday. If that happens, we will pursue the matter in a civil manner, potentially taking legal action.”
Ogunbanjo emphasized that telecommunications companies are private enterprises that require protection.
However, he urged the NLC to focus on finding solutions that consider the needs of both consumers and service providers.
“The NLC should not target the telecom operators, they are not a government agency. These are private businesses, not government entities subject to shenanigans. We want to handle this matter in a businesslike, civil manner,” he added.
Despite facing increasing operational costs due to inflation, exchange rate volatility, and the significant investments needed to meet growing consumer demand, phone call and messaging tariffs have remained unchanged.
These challenges have put immense financial strain on the telecommunications sector, jeopardizing its sustainability and its vital contribution to Nigeria’s digital economy.
Sina Bilesanmi, the National President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria, urged the NLC president to concentrate on labour-related issues and avoid getting involved in matters concerning the telecommunications industry.
“I have reviewed the NLC Act, and there is no provision empowering them to delve into telecom-related matters,” Bilesanmi said.
“The NLC president’s priority should remain the welfare of his union members, not matters outside their jurisdiction.”
Bilesanmi pointed out that several advocacy groups, including his own association, were already actively working to address consumer concerns within the telecommunications industry.
“We have been actively fighting for the rights of subscribers and ensuring their interests are protected,” he added.
In defending the association’s approval of the recent 50% tariff increase, Bilesanmi clarified that the decision was necessary to avoid the collapse of the telecommunications sector.
“We supported the increase because we want the industry to survive. A failing sector would result in job losses and widespread economic challenges,” he said.
However, he emphasized that the association remained resolute in its demand for better service delivery.
On the other hand, NLC President Joseph Ajaero accused the Federal Government of prioritizing revenue generation over the well-being of citizens by supporting the recent 50% increase in telecommunications tariffs.
In a statement on Friday, January 24, Ajaero criticized the government for siding with telecom companies while ordinary Nigerians struggled with the escalating cost of living.
Leading a workforce earning a minimum wage of less than $50, Ajaero expressed concern that the government was neglecting its regulatory duties and treating private telecom companies as though they were public enterprises.
“These corporate entities will be smiling to the bank while poverty among Nigerians continues. That’s the challenge we face now. We hear the minister speaking as if these are government-owned businesses,” Ajaero said.
“When you increase tariffs by 50 per cent, aside from the taxes the government may collect, it’s seen as a way to boost government revenue. This has been the same approach even in the power sector.”
He cautioned that the tariff hike would place an unfair burden on low-income earners, many of whom are already struggling to meet their basic living expenses.
“Government officials often say that higher tariffs are good, but this only pushes the people further down the poverty line. This is where we disagree. The government has not acted as a proper regulator to strike a balance between corporate interests and the welfare of the people,” he said.
“The government needs to strike a balance. For someone earning N70,000, paying over N10,000 on this tariff increase alone is significant. How will they afford transportation, housing, and other basic needs? It’s not realistic because, in reality, there’s no housing that costs N10,000, and transportation costs are equally high.”
The NLC president also slammed the government’s dependence on imported telecom and power equipment, suggesting that locally-produced components like cables and meters could help lower costs.
He called on the government to support local manufacturing instead of transferring the burden of import costs to consumers.
Ajaero further criticized officials who justify the tariff hike by citing inflation and operational expenses, describing these arguments as a cover for increasing government revenue while ignoring the struggles of ordinary Nigerians.
