Telecom tariff hike: Subscribers demand sanctions towards telcos, labour orders boycott

Telecom operators are going through a robust backlash from subscribers and employees after implementing a 50 per cent tariff hike with out ready for the result of a overview course of that was agreed upon, prompting the Nigeria Labour Congress to name for a nationwide boycott of telecom companies.

Whereas the NLC has known as for a boycott and a nationwide shutdown beginning March 1, the subscriber group – the Nationwide Affiliation of Telecommunications Subscribers, distanced itself from this strategy.

As a substitute, subscribers insist that the Nigerian Communications Fee should sanction operators for continuing with the rise with out approval, emphasising that the telecom corporations’ actions undermine the overview course of and disrespect the considerations of Nigerian shoppers.

Initially, the NLC had deliberate a strike on February 4, 2025, to protest the hike, however the motion was known as off following a stakeholders’ assembly with the Federal Authorities by means of the NCC on February 3.

The assembly resulted within the formation of a 10-person overview panel, tasked with making suggestions on the tariff subject, with a deadline set for February 17. Regardless of this, telecom operators proceeded with the tariff improve, successfully bypassing the panel’s course of.

This name from the labour union got here barely 24 hours after the Home of Representatives directed the telecom regulator and the Minister of Communications, Innovation, and Digital Financial system to droop the tariff hike.

The lawmakers argued that in gentle of rising inflation and the elimination of gasoline subsidies, Nigerians couldn’t afford increased telecom prices.

Though telecom operators had agreed to start implementing the 50 per cent hike on Monday, solely MTN, the nation’s greatest operator with over 80 million subscribers had initiated the rise by Tuesday, with different operators (Airtel, Glo, 9mobile) but to behave on the time of submitting this report.

In a communique signed by NLC President Joe Ajaero and Basic Secretary Emma Ugboaja following a gathering of the union’s Central Working Committee in Lokoja on Tuesday, the union accused telecom corporations of breaching public belief and flouting due course of by implementing the controversial tariff hike earlier than the 10-man overview panel had accomplished its deliberations.

The NLC additional chastised the federal government for its failure to safeguard residents from company exploitation.

As a part of its preliminary response to the tariff improve, the NLC had known as on Nigerian employees and sympathetic residents to boycott the companies of MTN, Airtel, and Glo each day from 11:00 am to 2:00 pm, beginning February 13 and persevering with by means of February 2025.

In its newest communique, the union said, “All employees and residents are urged to droop the acquisition of information from these corporations, which have develop into among the many most important instruments for exploiting Nigerian residents. We additionally demand the repatriation of all funds unlawfully siphoned in another country by these corporations.”

The union gave the telecom corporations till the tip of February 2025 to reverse the tariff improve, warning that if the operators fail to conform, a nationwide shutdown of their companies will probably be enforced beginning March 1, 2025.

The NLC instructed its state councils to right away start sensitising and mobilising their members, in addition to most people, of their areas.

Moreover, it requested its affiliate unions to encourage members throughout the nation to watch “digital silence” throughout the designated hours of protest.

In the meantime, the telecom subscribers group led by Deolu Ogunbanjo informed our correspondent that the settlement between the NLC and FG was undermined by the telcos.

“The telcos didn’t await the two-week interval or the tip of the month. So, why did the telcos proceed with the tariff improve with out contemplating the settlement made with the NLC?” he said.

The group, which is clamouring for a ten per cent improve from 50 per cent, said that it was awaiting the result of the panel to find out whether or not it could proceed to court docket.

“All we wished was that, throughout an emergency assembly final Friday, we advised that quite than going straight to court docket, we might first take into account the result of the protest and the panel being arrange by the NLC.”

Ogunbanjo additionally proposed options to the speedy tariff hike, suggesting {that a} phased improve might have been negotiated.

“We proposed a ten per cent improve in its place or perhaps a 30 per cent improve in phases. Similar to the gasoline value hike, which was phased from N200 to N600, such a phased improve might have been negotiated,” he stated.

Whereas NATCOMS has not known as for a boycott, Ogunbanjo demanded that the tariff improve be reversed till the panel submits its report. “Why arrange a panel in case you are not going to observe by means of with it? It’s hypocritical of the regulator,” he stated.

“In actual fact, any telco that has already applied the tariff improve with out approval from the regulator needs to be sanctioned as a result of the regulator had agreed with the NLC to convey all stakeholders to the desk for dialogue first. After that, something might occur, however for now, any telco that has elevated its tariff should be sanctioned.”

The NCC’s Director of Public Affairs, Reuben Muoka, stated he had not but heard in regards to the NLC’s name for a boycott, including that the Fee wouldn’t touch upon the matter at the moment.

“We is not going to have interaction on this subject,” he informed our correspondent.

Concerning the Home of Representatives’ name to droop the tariff hike, Muoka declined to remark.

The Secretary-Basic of the Personal Telecommunications and Communications Senior Workers Affiliation of Nigeria, Abdullahi Okonu, expressed assist for the continued tariff improve by telecom operators however acknowledged considerations raised by the Nigeria Labour Congress over the implementation course of.

Okonu said, “Our stance stays the identical—we’re in complete assist of the tariff improve. Nevertheless, on this specific matter, I feel NLC has a legitimate level. The federal authorities known as them for a gathering, they usually agreed {that a} 10-man committee can be arrange,” he informed The PidomNigeria.

“They got two weeks to resolve the problem, however I don’t assume the 2 weeks had handed earlier than the implementation started. What would have been greatest is that if that they had waited and resolved no matter points wanted to be addressed earlier than continuing with the implementation.”

Regardless of this, Okonu reaffirmed that PTECSSAN’s place stays unchanged. “We absolutely assist the tariff improve, so long as different elements, resembling electrical energy, gasoline, and the devaluation of the naira, stay excessive. So long as these elements proceed to be so costly, our stance will stay the identical—supporting the rise,” he added.

The Chairman of the Affiliation of Telecommunications Firms of Nigeria, Tony Emoekpere, expressed considerations over the continued debate surrounding the current tariff hikes applied by telecom operators, suggesting that the strategy taken by critics could also be flawed.

“I feel they’re going about it the unsuitable manner—utterly the unsuitable manner,” stated the ATCON chairman. “It’s simply the best way they’re taking a look at it. So, what do they need? What does the shopper need? Do they need good service, low cost service, or no service in any respect?

“For those who proceed like this, somebody will inform you that they can’t proceed offering this service. In the event that they preserve going, the service is not going to be offered in any respect. You may’t power it; it’s not a government-funded factor. That’s the error they’re making.”

The chairman additional drew an analogy to spotlight the problem, likening it to a client demanding decrease costs at a market with out regard for the price of offering the products.

“It’s not like authorities funding, do you perceive? It’s like somebody going to the market and saying, ‘You’re promoting tomatoes; if you happen to don’t decrease the worth, I gained’t purchase any.’ That doesn’t make sense. What’s the purpose of closing down the market over that?”

Reflecting on current statements from the Home of Representatives, which advised that telecom corporations ought to deal with bettering service high quality earlier than rising tariffs, the chairman acknowledged the complexity of the problem.

“As for what I heard from the Home of Representatives, I can perceive that. They stated high quality of service ought to enhance first, but it surely’s a chicken-and-egg scenario. Which one comes first? Are you giving me cash to enhance the standard of service? No. So, I don’t know,” Emoekpere.

The NCC introduced the tariff hike on January 20, citing rising operational prices and the necessity to make sure the long-term sustainability of the telecommunications sector.

The regulator underscored that the choice aligns with its regulatory mandate underneath Part 108 of the Nigerian Communications Act, 2003.

Regardless of the backlash, telecom operators argue that decision and messaging tariffs have remained static for years, whilst they grapple with hovering operational prices pushed by inflation, trade fee fluctuations, and the heavy investments required to fulfill rising client demand.

In line with business information, working prices have surged by over 300 per cent within the final 18 to 24 months, forcing operators to reduce investments in community infrastructure as they deal with managing international trade publicity and rising bills.

An inner doc from MTN Nigeria, obtained by The PidomNigeria, revealed that the telecom sector might expertise a big $870m drop in capital expenditures by 2026 on account of an 11-year delay in tariff changes.