Tariff Hike: In a bid to avert the nationwide protest scheduled for tomorrow, February 4, the Federal Government has invited the leadership of the Nigeria Labour Congress (NLC)for a closed door discussion concerning the recently approved 50% increase in telecommunications tariffs. Recall that the NLC had vehemently opposed the hike, labeling it as “insensitive” and “unjustifiable,” especially amidst the prevailing economic challenges faced by Nigerians.
The Nigerian Communications Commission (NCC) sanctioned this tariff adjustment, marking the first increase in over a decade. Telecom operators had initially sought a 100% hike, citing escalating operational costs due to high inflation and currency devaluation. However, the NCC settled on a 50% increase to balance industry sustainability with consumer affordability.
In response, the NLC announced a nationwide protest set for February 4, urging the immediate suspension of the tariff hike and calling for dialogue with government authorities. NLC President Joe Ajaero emphasized the union’s commitment to resisting policies that exacerbate the hardships of Nigerians. He stated; “This is a direct attack on the poor. At a time when inflation is skyrocketing, food prices are unaffordable, and fuel costs have tripled, the government is choosing to increase the cost of communication, an essential service.” The union is demanding an immediate suspension of the tariff adjustment and calling for an urgent dialogue between the government, the NCC, and labor leaders.
The closed door meeting is reportedly scheduled to hold by 4:00pm today as both parties would also be discussing other issues of national interest including the 8 billion naira budgetary allocation to electricity tariff.
The NLC February 4 proposed nationwide has sparked debate across the country. The protest is in response to the federal government’s recent approval of a 50% increase in telecommunications tariffs. This decision, sanctioned by the Nigerian Communications Commission (NCC), marks the first significant tariff hike in over a decade and has been met with both fervent opposition and measured support.
As part of their protest strategy, the NLC has issued out various warnings to the federal government, NCC and Telecos, which includes; A potential nationwide boycott of telecommunication services, mass protests in major cities and possible strike actions if the government refuses to engage in discussions
On the other hand, the Nigerian Communications Commission (NCC) has defended the tariff hike, citing escalating operational costs, including High inflation, currency devaluation, increased costs of network expansion and maintenance. According to the NCC, telecom operators had initially requested a 100% increase, but the 50% hike was approved as a compromise to ensure the sustainability of telecom services without overburdening consumers.
NCC spokesperson, Reuben Mouka, stated: “While we acknowledge the economic difficulties, the reality is that telecom companies are struggling with high costs. If we do not allow reasonable price adjustments, service quality will suffer.”
Meanwhile, Telecommunications operators in Nigeria have expressed serious concerns over the NLC’s planned protest, warning that such actions could further destabilize the already fragile sector. They argue that without the tariff adjustment, the industry could face service disruptions due to rising operational costs, job losses if telecom firms downsize, slower internet speeds and poor network quality due to lack of funds.
A senior executive at MTN Nigeria, who requested anonymity, stated: “We understand the public frustration, but without price adjustments, it will be impossible to sustain investment in the sector. Nigeria already has some of the lowest telecom tariffs in Africa.”
The Association of Licensed Telecommunication Operators of Nigeria (ALTON) has also called for dialogue instead of protest, urging the NLC to consider the long-term impact on investors and employment.
Economic experts have weighed in, arguing that the tariff hike reflects broader economic struggles rather than just telecom sector challenges.
Dr. Bismarck Rewane, CEO of Financial Derivatives Company, explained: “The telecom industry is not an isolated case. The cost of everything is rising due to inflation and the depreciation of the naira. The real issue is not the tariff hike but the weakening economy.” According to the National Bureau of Statistics (NBS), Nigeria’s inflation rate hit 32.5% in January 2025, its highest level in 18 years.
The National Association of Telecommunication Subscribers (NATCOMS) has rejected the NLC’s call for protests, arguing that it could discourage investment and worsen economic instability. NATCOMS President, Deolu Ogunbanjo, stated: “This strike is unnecessary. The solution is negotiation, not protests that will scare investors.”
Some business groups and tech startups have also raised concerns that disruptions from a nationwide protest could harm businesses that rely on stable internet and communication services.
Groups in support of the protest includes;The Civil Society Legislative and Advocacy Centre (CISLAC), The Take It Back Movement and The National Civil Society Council of Nigeria (NCSCN) who have described the tariff hike as a “war against the poor” and accused the government of prioritizing corporate profits over citizens’ well-being.
With just few hours to the February 4 protest, analysts believe the federal government may step in to prevent disruptions. The possible government actions to halt the strike may include: A temporary suspension of the tariff hike to allow more consultations, a subsidy plan to reduce telecom costs for low-income earners, regulatory interventions to balance corporate interests with consumer protection, etc.
Meanwhile, the Minister of Communications and Digital Economy, Bosun Tijani, recently hinted at ongoing discussions with stakeholders to find a solution before the protests escalate. “We acknowledge public concerns. The government is engaging with industry players and labor unions to find a middle ground,” Tijani said.
The Federal Government’s meeting with NLC leaders aims to find a middle ground and prevent the impending protest. Details of the discussions remain undisclosed, but there is cautious optimism that a resolution can be reached to address the concerns of both the telecom operators and the Nigerian populace.
As the situation develops, stakeholders and citizens alike are keenly observing the outcomes of these deliberations, hoping for a solution that ensures fair pricing while sustaining the telecom industry’s viability.
Read also: https://symfoninews.com/labour-strike-records-70-per-cent-compliance-in-taraba-nlc-chairman/
