The Nigeria Labour Congress (NLC) has condemned recent approval granted to telecommunications operators in the country by Nigerian Communications Commission (NCC), to effect a 50 percent increase in telecommunication tariffs.
Weighing in on the matter, the Federal Competition and Consumer Protection Commission (FCCPC) said it was crucial that the approved 50 percent adjustment in telecommunications tariffs, “directly translate into demonstrable and tangible service enhancements for consumers.”
However, the tariff hike approval has continued to spark widespread debate among industry stakeholders and consumers.
In a statement signed by NLC President, Joe Ajaero, the Labour movement urged the federal government, the NCC and the National Assembly to stop the implementation of what it described, “as ill-advised” hike to allow a reasonable conversation around it.
“NLC expresses its unequivocal condemnation of the federal government’s recent approval, through the NCC of a 50 percent increase in telecommunication tariffs.
“This decision, coming at a time when Nigerian workers and the masses are grappling with unprecedented economic hardship, is a clear assault on their welfare and an abandonment of the people to corporate fat cats.
“The NLC calls on all Nigerian workers and masses to reject this unjustifiable tariff hike. We urge citizens to prepare for collective action, including the possibility of a nationwide boycott of telecommunication services, to compel the reversal of this punitive increase,” it stated.
The NLC noted that telecommunication services are essential for daily communication, work, and access to information, adding that average Nigerian workers already spends approximately 10 percent of their wages on telecom charges.
“For a worker earning the current minimum wage of N70,000, this means an increase from N7,000 to a staggering N10,500 per month or 15 percent of his salary—a cost that is unsustainable.
“This hike exemplifies the government’s apparent ease in prioritising corporate profits over citizens’ welfare. It is shocking that the government approved this 50 percent tariff increase for telecom companies within a month, yet took nearly a year to approve the recent minimum wage for workers, despite the rising cost of living and inflation eroding purchasing power,” it added.
The NLC accused the federal government of deliberately aligning with the interests of wealthy corporations than with the needs of the workers and citizens it is meant to serve.
It stated that it would remain resolute in defending the interests of Nigerian workers and the masses, adding that it will not allow the people to bear the brunt of policies that further entrench poverty and inequality.
Meanwhile, the FCCPC on Wednesday said it was crucial that the approved 50 per cent adjustment in telecommunications tariffs “directly translate into demonstrable and tangible service enhancements for consumers.”
The commission though acknowledged the economic pressures faced by telecom operators, including increasing operational costs, insisted unequivocally that”consumer interests remain paramount”.
In a statement, FCCPC Director, Corporate Affairs, Ondaje Ijagwu, the consumer rights agency said, the NCC’s approval of a 50 per cent adjustment, which was lower than the over 100 percent increase initially proposed by operators, demonstrated a thoughtful effort to balance industry sustainability with consumer protection.
Ijagwu said, “We are also pleased with the NCC’s directive to operators to ensure that, henceforth, tariffs are clear, straightforward, and free of hidden charges or complexities.
“Operators are now required to disclose all key details upfront, including the cost, validity period, and the specific inclusions of a plan.
“The FCCPC acknowledges the intense pressure faced by the NCC over the years to approve tariff increases due to the rising operational costs experienced by telecom operators, which became more pronounced in recent times.”
The FCCPC also commended the NCC for adopting a deliberate and measured approach by rationalising the tariff adjustment and linking it to commensurate improvements in service quality while implementing measures to mitigate the impact on consumers.
Ijagwu said, “Consumers can also expect a mandatory disclosure table from their service providers, enabling them to make informed decisions without worrying about unexpected charges or surprises.
“Consumers have consistently expressed the desire for measurable improvements in the quality of service before any tariff increases are implemented.
“Issues such as network congestion, dropped calls, inconsistent internet speeds, unusual data depletion, and poor customer service have remained prevalent concerns.
“It is therefore, crucial that tariff adjustments directly translate into demonstrable and tangible service enhancements for consumers.”
He noted that the Memorandum of Understanding (MoU) recently signed between the FCCPC and NCC highlighted a shared commitment to ensuring robust consumer protection, fair competition, and the eradication of exploitative practices in the telecommunications sector.
The agreement reinforces the principle that any regulatory or pricing adjustment must balance the sustainability of the industry with the interests of consumers.
The statement added, “It is non-negotiable that telecom operators must prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment.
“The rationale for the increase must be reflected in better services for consumers who rely on telecommunications for both personal and business purposes.
“Operators are expected to allocate increased revenues responsibly, with an emphasis on infrastructure development and service delivery improvements.
“Clear mechanisms must be established to monitor how these funds are utilised, ensuring that consumers directly benefit from the adjustments.”
Among other things, it said, “Operators must also clearly communicate the rationale for the tariff adjustments to consumers. This includes ensuring that consumers are fully informed about the nature of the changes, their benefits, and how they align with efforts to improve service delivery and infrastructure.
“The MoU between the FCCPC and NCC provides a unified framework to oversee the implementation of this tariff adjustment in a manner that meets the needs of consumers.
“The partnership ensures that the increase does not become a justification for exploitative practices but rather an opportunity to foster fairness, transparency, and accountability in the telecommunications sector.
It added, “We are committed to closely monitoring the impact of these tariff adjustments to ensure compliance with established regulatory standards. Operators are reminded that the FCCPC is actively working with NCC to address concerns that may be raised by consumers during this transition period and beyond.
The commission encourages consumers to report any unfair practices or concerns through its official channels to ensure effective resolution.
“As Nigeria embraces rapid technological advancements and increasing reliance on digital connectivity, it is imperative that the benefits of a thriving telecommunications ecosystem extend to all stakeholders, particularly consumers.
“The FCCPC assures the public that, together with the NCC, we will continue to pursue measures that uphold these objectives.”
In the meantime, the recent announcement of a 50 percent increase in telecoms tariff by the NCC has continued to spark widespread debate among industry stakeholders and consumers.
The hike, which raised call rates from N12 to N18 per minute and SMS charges from 4 to N6, also increases data costs from N300 to over N400 per gigabyte. While operators cite rising operational costs, inflation, and foreign exchange volatility as justification, critics argue that the burden of inefficiencies is being unfairly transferred to subscribers.
Speaking yesterday on ARISE News Channels, the broadcast arm of THISDAY Newspapers, a legal expert, Frank Tietie, criticised the tariff adjustment, highlighting the lack of a public inquiry as stipulated by Sections 57 and 58 of the NCC Act.
“There must be public hearings where consumers can represent their grievances and demand accountability. Nigerians deserve a platform to question poor service quality and the lack of investment in sustainable energy alternatives like solar power,” Tietie said.
He faulted telecom operators’ over reliance on diesel and their failure to explore green energy solutions despite global commitments to sustainable practices. He also pointed out the absence of significant consumer protection mechanisms within the NCC, describing them as ‘out of reach for the ordinary Nigerian’, adding that complaints, such as incessant SMS advertisements and drop calls, are often ignored, forcing consumers to bear the brunt of inefficiencies.
Defending the hike, industry proponents cited inflation rates, which have surged from 9 per cent a decade ago to over 30 per cent today, and the challenges of maintaining telecoms infrastructure amidst insecurity in some parts of the country. Tietie, however, dismissed these justifications, stating that systemic issues, such as unresolved debts between telecom operators and banks over USSD charges, should not be transferred to consumers. “The NCC has failed to prioritise consumer interests, instead shielding operators from accountability,” he added.
As Nigerians grapple with rising costs, the debate underscores the need for a balanced approach that protects consumers while sustaining the telecoms industry. Tietie advised ordinary citizens to demand better service quality and accountability, urging the government to enforce stricter oversight and explore innovative solutions to reduce operational costs.
President of the Association of Telecommunications, Information Technology, Cable Satellite Network Operators and Allied Services Employers’ of Nigeria (ATICEN), Adede John Williams, yesterday, commended the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, and the EVC/CEO of Nigerian Communications Commission (NCC), Dr. Aminu Maida, for taking a proactive measures concerning tariff hike in Nigeria, insisting that it will further ensure the operational sustainability of the telecommunications operators in Nigeria.
Williams emphasised the role the telecommunications sector and the ICTs subsector plays in Nigeria’s economy through its contributions to foreign direct investment (FDI) and GDP growth.
He called for collaboration between subscribers and telecoms operators, to further drive development in the telecoms sector.