Labour Unions Oppose Tariff Increase, Demand Protection for Nigerians Against Exploitation

The National Association of Telecommunications Subscribers (NATCOMS) is set to meet with the Nigerian Communications Commission (NCC) today to push for a reduction of the recently approved 50% telecom tariff hike. Subscribers are advocating for a more modest 10% increase, while the Nigeria Labour Congress (NLC) prepares for potential protests to oppose the decision.

The federal government approved a 50% tariff increase after telecom operators initially sought a 100% hike. Subscribers have warned that if discussions with the NCC fail, they will file a lawsuit next week to challenge the policy.

A Decade-Long Wait for Tariff Adjustment Sparks Controversy

The tariff hike—the first in over ten years—was introduced to support Nigeria’s struggling telecommunications sector, which contributes approximately 14% to the nation’s GDP. However, the decision has sparked heated debates, with labour unions and consumer groups arguing that it places an undue burden on Nigerians already grappling with economic challenges.

Joseph Ajaero, President of the NLC, criticized the hike, calling it an added strain on workers earning less than $50 monthly. The union hinted at possible collective actions, including a nationwide boycott of telecom services, to force a policy reversal.

Subscribers Advocate Constructive Solutions

NATCOMS President Adeolu Ogunbanjo highlighted the importance of constructive engagement over protests, which he believes could harm investor confidence. “Going to court is the civil way to address this, not boycotting telecom services,” Ogunbanjo stated. He emphasized that the telecom sector, a successful model of privatisation in Nigeria, should not be jeopardized through disruptive actions.

Ogunbanjo also urged telecom operators to consider alternative funding avenues, such as raising capital through public stock offerings, instead of relying on tariff hikes. “These businesses are private enterprises. Investors will buy into the telecom sector if they go public. Protests are not the solution,” he added.

Labour Unions Signal Readiness for Action

The NLC has called for peaceful demonstrations and boycotts to express dissatisfaction with the tariff hike. NLC Public Relations Officer Benson Upah encouraged Nigerians to peacefully resist policies that worsen their economic struggles. “Citizens have a right to protest policies they find unacceptable. Such actions must remain peaceful yet impactful,” Upah said.

The Lagos State NLC Chairperson, Sessi Funmi, suggested that the union might escalate its actions, potentially staging protests at telecom service providers’ headquarters or organizing boycotts. “The NLC will consult its National Executive Council to decide on the next steps,” Funmi stated.

Students Reject Hike, Issue Ultimatum

The National Association of Nigerian Students (NANS) also rejected the tariff increase, describing it as “unjustifiable and inconsiderate.” NANS issued a 72-hour ultimatum to the NCC and the Ministry of Communications to reverse the hike, warning of nationwide protests if their demands are not met.

The student body emphasized that affordable internet access is critical for education and development. They argued that the tariff hike would deepen the digital divide and further exclude millions of students from educational opportunities. “The burden of operational costs should not be passed onto students and the public,” NANS stated.

Government and Telcos Justify Tariff Increase

Finance Minister Wale Edun defended the tariff hike during an interview at the World Economic Forum in Davos, Switzerland. He described the adjustment as necessary to address rising inflation and operational costs while ensuring improved service quality. “The tariff increase must reflect economic realities, but it will be reviewed periodically to ensure fairness,” Edun said.

Telecom operators, including MTN and Airtel, also expressed support for the tariff hike, emphasizing its importance for maintaining infrastructure, improving service quality, and driving innovation. MTN CEO Karl Toriola stated that the increase would enable critical investments to sustain reliable services, while Airtel CEO Dinesh Balsingh highlighted the need for the adjustment to foster long-term industry growth.

Conclusion

As the controversy over the telecom tariff hike intensifies, stakeholders remain divided. While labour unions and consumer groups advocate for a reversal or reduction, the government and telecom operators argue that the hike is vital for sustaining the sector. With protests and lawsuits looming, the coming weeks will determine whether a compromise can be reached to balance the interests of consumers, businesses, and the broader economy.

The leadership of Labour Party in Diaspora invites media Organisations to a World Press Conference in preparation for a one-day summit for all Elected candidates of Labour Party Nigeria
Venue : Labour Secretariat Utako Abuja
Date : 22/5/2023
Time : 9AM

Dr Yunusa Tanko