NLC threatens nationwide telecoms boycott over 50% tariff hike

The Nigeria Labour Congress has asked Nigerians to prepare for a nationwide boycott of telecommunication services in protest of the Nigerian Communications Commission’s (NCC) recent approval of a 50% increase in telecom tariffs.

On Monday, the NCC approved a 50 percent hike in telecom tariffs after a telcos’ agitation for cost-reflective prices in the face of harsh economic conditions. This increase, which was below the 100 percent rise telcos asked for, pushed the average cost of calls to N16.5 per minute from N11, the cost of 1GB of data to N431.25 from N287.5/GB, and SMS prices to N6 from N4.

“The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” the commission said.

In a statement on Wednesday, the NLC President, Joe Ajaero, condemned the tariff hike, describing it as an unjust burden on citizens already grappling with economic challenges. He expressed concern over the timing of the hike, saying it coincides with rising inflation and declining purchasing power.

He noted that telecom services have become a basic necessity as the average Nigerian worker spends approximately 10 percent of their income on telecom charges.

He said, “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.

Read also: Tariff hike must come with better services, FCCPC tells telecoms operators

“Telecommunication services are essential for daily communication, work, and access to information. Yet, an average Nigerian worker 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.”

Ajaero urged Nigerians to reject the tariff hike and prepare for collective action, including the possibility of a mass boycott of telecommunication services, to compel a reversal of the increase.

“NLC is not opposed to a tariff review but disagrees with the approved rate of increase. We therefore call on the government, the NCC and the National Assembly to stop the implementation of this ill-advised hike to allow a reasonable conversation around it. If the dialogue agrees on the need for the hike, then we can all seek a more humane increase and definitely not this 50 percent hike,” he stated.

However, while announcing the increase in tariffs, the NCC explained that adjusting rates was aimed at addressing the gap between rising operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised.

Telcos had lamented that they were facing a shutdown due to a 300 percent rise in operating costs. In 2024, Karl Toriola, CEO of MTN Nigeria, declared that the company would shut down if tariff increases were not implemented.

“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage,” the NCC stated.

It emphasised that it had to strike a balance between protecting telecom consumers and ensuring the industry’s sustainability.

Meanwhile, the Federal Competition and Consumer Protection Commission (FCCPC) has tasked telcos to improve their service quality delivery following the increase in tariffs. In a statement on Wednesday, it noted that consumers have expressed the desire for measurable improvements in the quality of service.

Read also: MTNN rallies most on tariff hike

“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,” it stated.