On the morning of 20th January 2025, Nigerians woke to the shocking announcement of a 50 per cent increase in telecom tariffs by the Nigerian Communications Commission (NCC). The decision, which was made without prior notice to subscribers, has been met with widespread rejection, including opposition from the Nigeria Labour Congress (NLC). Analysts have criticised the move as autocratic, arguing that the telecom industry cannot thrive without the very subscribers who sustain it.
Despite strong opposition from telecom industry groups and the labour union, telecom operators have begun implementing the hike without prior notification to consumers. The NCC, having approved the tariff increase and the rate adjustment template, justified the move as necessary to align with prevailing market conditions and industry reforms.
The regulatory body, through its Director of Public Affairs, Mr Reuben Muoka, defended the decision, stating that the commission was acting under Section 108 of the Nigerian Communications Act, 2003 (NCA), which empowers it to regulate and approve tariff rates. Telecom operators had originally requested a 100 per cent increase, arguing that higher charges were essential for industry sustainability. However, after considering economic conditions, the NCC capped the increase at 50 per cent.
Reports had initially suggested that the government had scaled down the proposed increase from 50 per cent to 35 per cent following pressure from the NLC. However, further findings revealed this claim to be inaccurate, as telecom providers have gone ahead with the full 50 per cent increase.
The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, assured subscribers that the tariff hike would enable network providers to invest in infrastructure development and network expansion, ultimately leading to improved service quality. However, he admitted that the expected improvements would not be immediate but urged Nigerians to be patient.
A visit to several telecom offices in Osun State confirmed that the implementation process had already begun, with subscribers reporting a significant increase in call and data rates. MTN was the first to apply the new charges, followed by Airtel, while Glo and other network providers are set to follow suit. Consumers have noted that MTN’s data rates remain higher than those of its competitors, despite the general increase in costs.
A correspondent who visited an MTN office in Osun State to complain about the sudden increase in charges was informed that the adjustment was approved by the telecom industry and applied across all networks.
Despite the Nigeria Labour Congress’s threats to stage protests against the tariff hike, telecom operators have stood firm, insisting that the adjustment is necessary for the sustainability of the industry. They have also ruled out negotiations with organised labour, maintaining that the increase will not be reversed despite growing public outcry.
However, after meeting with government representatives at the Office of the Secretary to the Government of the Federation in Abuja, the NLC suspended its planned protest. The labour union had initially rejected the tariff hike outright and demanded that it be reduced to just five per cent, threatening nationwide demonstrations if the demand was not met.
Condemning the move as insensitive and unjustifiable, NLC President, Joe Ajaero, stated that the increase would impose an additional financial burden on Nigerian consumers who were already struggling with economic hardship.
“After extensive discussions, the following resolutions were reached: NAC-in-session totally rejects the 50 per cent telecom tariff hike, which it considers too harsh for citizens. It, therefore, strongly condemns the Nigerian Communications Commission’s decision to approve the increase,” Ajaero said.
“This decision is insensitive, unjustifiable, and a direct attack on Nigerian workers and the general populace, who are already suffering under worsening economic conditions caused by government policies beyond their control.”
The NLC further criticised the NCC’s approval of the tariff hike, arguing that it represented a clear disregard for the welfare of Nigerian workers. It accused the government of abandoning ordinary citizens to the mercy of corporate interests at a time when inflation and rising living costs were making life increasingly difficult.
While the NLC initially threatened mass action, its efforts to halt the increase appear to have had little effect, as the new rates have already been implemented. Nigerian workers, who are still grappling with the poor implementation of the new minimum wage, now face yet another financial challenge.
In a move that appears to be an afterthought, the NLC on Monday directed its 54 affiliates to prepare for mass protests should the government fail to honour agreements reached by a 10-man negotiation committee. However, with telecom companies already enforcing the new charges, the effectiveness of this directive remains uncertain.
Meanwhile, the National Association of Telecoms Subscribers (NATCOMS) has vowed to take legal action against both the government and telecom operators over the tariff increase. Despite these threats, no significant progress has been reported on the lawsuit.
The government has justified the hike by citing rising inflation, which stood at 34.80 per cent in December 2024. A lecturer from Obafemi Awolowo University, who preferred to remain anonymous, described the increase as a double jeopardy for Nigerian workers, arguing that it would further impoverish low-income earners.
“The telecom tariff hike will effectively wipe out the salary increment recently granted to federal government workers. The N40,000 minimum wage increase will be meaningless in the face of high inflation and economic hardship. We may soon find it difficult to afford essential phone calls, just as we can no longer afford to fuel our cars for daily commuting,” he lamented.
While the NLC had originally proposed a 35 per cent increase, the telecom industry proceeded with its 50 per cent hike, further escalating tensions between the government and organised labour.
The outcome of the standoff between the NLC and the federal government remains to be seen. However, reversing the telecom tariff hike at this stage seems unlikely, leaving many Nigerians to bear yet another economic burden.
