• Hike justified amid 34.8% inflation, coalitions tell Labour
• How NCC’s presentations, economic assessments, data forced re-evaluation
• FG makes last-minute move to avert action
• Group hails strike, urges NLC to defend Nigerians

The planned strike by the Nigeria Labour Congress (NLC) kicks off today with prominent civil society organisations withdrawing support for the action. The labour union had called for the strike to protest the 50 per cent hike in telecoms tariffs by the Nigerian Communications Commission (NCC). It described the increase as “a clear assault” on citizens’ welfare and “an abandonment of the people to corporate fat cats.”

NLC President, Joe Ajaero, argued, “Telecommunication services are essential for daily communication, work, and access to information. Yet, an average Nigerian worker already spends approximately 10 per cent of his wages on telecom charges.”

Also, on Thursday, last week, in a letter to affiliate unions and state councils, NLC General Secretary Emma Ugboaja urged them to mobilise other Nigerians to send a powerful message to the government.

However, at a press briefing in Abuja yesterday, the National Civil Society Council of Nigeria (NCSCN) announced its decision to suspend the planned strike, following its meeting with the NCC.

Recall that the council, alongside its 620 affiliate organisations, initially condemned the hike and planned a mass protest to occupy the headquarters of the NCC and the National Assembly until the government reversed the tariff adjustment.

However, in what the council described as an unprecedented display of responsiveness, the NCC reached out within 24 hours to initiate discussions. According to NCSCN Executive Director, Blessing Akinlosotu, the Council’s delegation initially approached the meeting prepared for a showdown, expecting to challenge the NCC on the tariff decision.

However, he said detailed presentations, economic assessments, and operational data provided during the meeting led to a re-evaluation of the situation. Akinlosotu said, “After the tense and robust engagement with the management of NCC, we further set up a five-man technical committee to carefully study documents presented to us and asked the committee to do a clinical and forensic examination of available records of operational costs and yearly profit margins of some major telecom service providers in Nigeria, with critical assessments of financial statements. Our findings were very interesting and call for a serious review of the position and planned line of action.”

The committee’s findings revealed that telecom operators had not increased tariffs since 2013 despite inflation and harsh economic conditions. The cost of electricity and diesel has risen sharply, significantly impacting network operations. Security challenges, particularly the vandalism of telecom infrastructure, have placed additional financial strain on service providers.

The devaluation of the naira and fluctuations in foreign exchange rates have also contributed to rising costs, making it more expensive to import telecom equipment.

While the approved 50 per cent tariff hike represents an upper limit, the council noted that competition among service providers could prevent operators from implementing the maximum increase.

The NCSCN called on the NCC to ensure that telecom operators comply fully with the conditions tied to the tariff hike, particularly those requiring service quality improvements.

It also urged the regulator to strengthen monitoring mechanisms to prevent operators from unfairly imposing the maximum 50 per cent increase on consumers.
Telecom providers were advised to prioritise customer interests by keeping tariffs as low as possible despite the approved adjustment.

The council also appealed to the Federal Government to declare an emergency in the energy sector, citing the high cost of electricity and fuel as major factors driving up telecom costs.

Also, the Private Telecommunications and Communications Senior Staff Association of Nigeria (PTECSSAN) rejected the planned strike. PTECSSAN, in a letter addressed to the NLC leadership, argued that the tariff hike, though painful, is necessary to prevent the imminent collapse of the sector, which could have far-reaching consequences for the economy.

The association, representing workers in the telecom sector, expressed disappointment that the NLC took the decision without consulting it, despite its direct involvement in the industry.

The body, in the letter signed by its General Secretary, Comrade Okonu Abdullahi, highlighted the severe challenges facing the telecom sector, including skyrocketing operational costs driven by the removal of fuel subsidies, rising prices of diesel (Automated Gas Oil), and increased electricity tariffs.

The union revealed that the cost of diesel, which powers telecoms base stations, has risen from N842.25 in May 2023 to an average of N1,441.28 as of January 2025.

Similarly, the price of petrol used by field engineers to maintain telecom infrastructure has surged from N198 to over N1,030 within the same period. Similarly, the Coalition of Human Rights Monitoring Groups (CHRMG) criticised the NLC over the planned protest, describing the action as “misguided and not in the public interest.”

The civil society organisations said the tariff hike, approved by the NCC, is a necessary step to prevent the telecom sector from collapsing. The coalition, led by Gabriel Agabi, argued yesterday that with inflation at 34.8 per cent—nearly 300 per cent higher than the 8.5 per cent rate in 2013—the tariff adjustment was vital to reflect economic realities.

Agabi emphasised that the NCC’s decision was made in good faith, considering ongoing industry reforms aimed at sustaining the telecom sector and aligning it with international standards.

“The last telecom tariff increase occurred in 2013 when inflation was 8.5 per cent. With the current inflation rate at 34.8 per cent, the tariff adjustment is essential to reflect economic realities,” Agabi said.

“The increase will remain within the tariff bands stipulated in the 2013 NCC Cost Study, ensuring it does not unduly burden consumers. Additionally, it is critical for ensuring Nigeria’s telecom sector remains competitive globally.

“For instance, the average cost of 1GB of data in South Africa is around N1,200, while in Ghana, it is around N1,500. In Nigeria, the average cost is about N500. This hike will help bridge the gap and enable telecom operators to invest in infrastructure and improve service quality.”

Agabi noted that the adjustment also aligned with the federal government’s digital economy agenda, which seeks to leverage technology for economic growth and development. He said the increase would enable operators to expand networks, enhance internet speeds, and develop new digital services to support a more connected society.

The coalition commended President Bola Tinubu’s administration for its efforts to reform the telecom sector and ensure its sustainability. Agabi called on the NLC to reconsider its position and engage in constructive dialogue with the NCC and other stakeholders, warning that the protest might inadvertently harm the people it seeks to protect.

“We urge the NLC to prioritise the interests of Nigerian workers and citizens by supporting policies that promote economic growth and development,” Agabi said.

The coalition also called on Nigerians to look beyond the immediate discomfort of the tariff increase, highlighting the long-term benefits such as job creation, economic stimulation, and improved quality of life.

HOWEVER, the Democratic Socialist Movement (DSM) took a different path, calling on the NLC to adopt a coherent programme to defend the interests of the working class and poor masses. In a statement yesterday, the Organising Secretary, Peluola Adewale, hailed labour’s initiative for the strike to resist the mass action against the tariff hike.

He said: “The announcement of the decision by the NLC to hold a nationwide mass protest on Tuesday, February 4, 2024 (today), against another increase in telecom tariffs is a development that should be applauded by all and sundry, considering the decisively anti-poor, exploitative, and provocative character of the policy.

“As is widely known, telecom firms operating in Nigeria have a legendary record of brutal exploitation despite poor service delivery. Since the early 2000s, when the sector was privatised by the then-President Olusegun Obasanjo administration, the big telecom firms have been milking Nigerians of their hard-earned income while enjoying, for a period, all sorts of support from the government, including tax holidays and numerous waivers.”

According to the group, despite poor call and internet services, Nigeria has some of the highest call and data tariffs in Africa. It wondered why the ‘fat cats’ of the private telecom firms, after years of making record profits in Nigeria, were laying claim to the unfolding economic crisis in the country as a justification for a 50 per cent tariff increase, describing it as a provocation that requires a decisive response from the labour movement.

It censured the NLC for “conveniently ignoring” all other neo-liberal attacks of the President Bola Tinubu regime on the livelihood of the Nigerian people over the last one and a half years, describing it as a betrayal of the economic interests of the working class and poor masses, who have been enduring one of the worst cost-of-living crises in Nigeria’s history.

“So, it is no surprise that the NLC’s call for a protest has failed to generate any enthusiastic response even within the ranks of the labour movement itself. This is because of a lack of trust in the leadership of the NLC and a general feeling that, even when they call for action, they are not interested in any serious fight-back.

“Due to labour leaders’ history of stopping protests and then making unpalatable deals, many also rightly expect that whatever action is called may be suspended before it even starts; so no one wants to invest energy and resources in something that is likely to be suspended at the last minute. This is likely to be the case again, considering that a meeting between the NCC and NLC leadership has been scheduled to take place on the eve of the protest,” he added.

This came as the NLC chapter in Bauchi State affirmed its readiness to comply with the national leadership’s directive to begin the strike today. Addressing journalists yesterday, the state chairman, Comrade Dauda Shuaibu, confirmed that all affiliate unions were prepared to participate in the protest by shutting down the NCC office in the state.

“We encourage our members and the general public to support us in rejecting this 50 per cent increment in its entirety,” Shuaibu said. Meanwhile, there were indications that the Federal Government planned to meet NLC yesterday to stop today’s nationwide protest.

A reliable source familiar with the matter, who preferred anonymity, disclosed this yesterday morning, noting that the meeting between the NLC leadership and the Federal Government had been scheduled for 5:00 p.m.

The source said the meeting was a “dialogue on matters of national interest as it affects Nigerian workers. According to the source, it would be an inter-ministerial meeting with the Secretary to the Government of the Federation (SGF), purposely to resolve issues raised by the NLC concerning the Federal Government’s approved upward adjustment to telecommunications tariffs, which the NLC, its allies, and others vehemently oppose.