The National Association of Telecommunications Subscribers (NATCOMS) is set to engage the Nigerian Communications Commission (NCC) on Friday, calling for a reduction of the recent 50% telecom tariff hike to a more manageable 10%. Should these discussions fail, NATCOMS has indicated plans to file a lawsuit next week challenging the increase.
The Federal Government approved the 50% hike after telecom operators initially pushed for a 100% increase. The move has sparked widespread backlash, with many subscribers arguing for a smaller adjustment, citing the strain it would place on consumers.
The tariff hike, which is the first in over a decade, is seen as a step towards revitalising the struggling telecommunications sector, which contributes around 14% to Nigeria’s GDP. However, it has stirred heated debates across the country, drawing criticism from various groups, including the Nigeria Labour Congress (NLC), which sees the increase as a burden on workers.
On Wednesday, NLC President Joseph Ajaero condemned the hike, calling it an additional financial burden on Nigerian workers, many of whom earn less than $50 per month as a minimum wage. The union warned of collective action, including a nationwide boycott of telecom services, to compel the government and the NCC to reverse the decision.
In a statement on Thursday, NATCOMS President Adeolu Ogunbanjo rejected the idea of a boycott, arguing that such actions could harm investor confidence in Nigeria. He emphasized that the telecom sector, despite its challenges, remains a model of successful privatisation in the country and suggested that solutions should be found that benefit both consumers and operators.
“We are not backing the NLC on this. Boycotting telecom services will send the wrong signal to investors,” Ogunbanjo said. “The President is working hard to attract foreign investment, and this kind of action could undermine those efforts.”
Despite the rising costs of operation due to inflation, exchange rate fluctuations, and necessary infrastructure investments, Ogunbanjo stressed that telecom companies should seek alternative funding options, such as Initial Public Offerings (IPOs), to raise capital, rather than pass the burden onto consumers.
Meanwhile, the NLC’s Public Relations Officer, Benson Upah, has called on Nigerians to protest peacefully against the hike. He emphasized that citizens should actively resist policies they find unjust, including potential boycotts and demonstrations, while maintaining a non-violent stance.
The NLC’s Lagos State Chairman, Sessi Funmi, added that while the union has not yet decided on a course of action, a collective decision would be made through the National Executive Council (NEC), which could involve a nationwide protest or other measures.
NANS Issues Ultimatum
The National Association of Nigerian Students (NANS) also expressed strong opposition to the tariff hike, labelling it “inconsiderate and unjustifiable.” The student union issued a 72-hour ultimatum to the NCC and the Ministry of Communications and Digital Economy to reverse the increase, warning that failure to do so would result in nationwide protests.
NANS argued that the hike would deepen the digital divide, making it harder for students to access educational resources, particularly in a country where affordable internet access is vital for bridging the education gap. The association called for immediate dialogue with the relevant authorities to discuss more affordable solutions.
Finance Minister Defends Tariff Hike
Nigeria’s Minister of Finance, Wale Edun, defended the tariff adjustment, stating that it was necessary to sustain the telecom sector amidst rising operational costs. Speaking at the World Economic Forum in Davos, Switzerland, on Thursday, Edun stressed that while the sector’s tariffs are regulated, the increasing cost of living and inflation must be reflected in business operations.
“We want telecom companies to operate efficiently, deliver high-quality services, and contribute to the economy. This tariff adjustment is just the starting point. It will be reviewed periodically to ensure it remains balanced for both consumers and operators,” Edun said.
The finance minister added that the government expects the tariff increase to lead to improvements in service delivery, such as better call quality and reduced dropped calls, which will benefit consumers in the long term.
Telcos Defend the Increase
Telecom operators, including MTN and Airtel, have defended the tariff hike, arguing that it is essential for the sector’s sustainability and for continued investment in infrastructure. MTN Nigeria’s CEO, Karl Toriola, explained that the increase would enable the company to maintain critical investments in its network and ensure the delivery of reliable services.
Airtel Nigeria’s CEO, Dinesh Balsingh, echoed this sentiment, emphasizing that the hike was necessary for both the survival and growth of the sector. He also noted that the adjustment would enable telecom companies to expand coverage and improve services in line with evolving customer needs.
Both MTN and Airtel expressed their commitment to the continued development of Nigeria’s digital infrastructure and stressed that the tariff increase would ultimately benefit consumers through enhanced services and better network reliability.
