With 34.8% inflation, telecom tariff hike justifiable, group tells NLC

The Coalition of Human Rights Monitoring Groups (CHRMG) has faulted the Nigeria Labour Congress’s (NLC) planned protest against the 50 per cent telecom tariff increase, describing it as “misguided and not in the public interest.”

The CSOs said the tariff hike, approved by the Nigerian Communications Commission (NCC), is a necessary measure to prevent the telecom sector from collapsing.

The labour leaders had last week demanded an immediate suspension of the 50 per cent tariff hike, declaring a nationwide protest slated for February 4 if their demand was not met.

But the coalition, led by Gabriel Agabi, in a statement on Monday, argued that with the current inflation rate at 34.8 per cent, a nearly 300 per cent increase from 8.5 per cent in 2013, the tariff adjustment is essential to reflect economic realities.

Agabi said the NCC’s decision was made in good faith, taking into account ongoing industry reforms that will positively influence sustainability.

He added that the tariff hike is also crucial in ensuring that Nigeria’s telecom sector remains competitive with international standards.

“The last telecom tariff increase was in 2013 when Nigeria’s inflation rate was 8.5 per cent. However, with the current inflation rate at 34.8 per cent, a nearly 300 per cent increase, the tariff adjustment is essential to reflect economic realities,” Agabi said.

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“The NCC’s decision was made in good faith, taking into account ongoing industry reforms that will positively influence sustainability. The increase will remain within the tariff bands stipulated in the 2013 NCC Cost Study, ensuring that it does not unduly burden consumers.

“The tariff hike is also crucial in ensuring that Nigeria’s telecom sector remains competitive with international standards. Compared to other countries, Nigeria’s telecom tariffs are relatively low.

“For instance, in South Africa, the average cost of 1GB of data is around ₦1,200, while in Ghana, it is around ₦1,500. In Nigeria, the average cost of 1GB of data is around ₦500. The tariff hike will help to bridge this gap and ensure that telecom operators can invest in infrastructure and provide quality services to consumers.

“The tariff hike is also essential for the Nigerian government’s digital economy agenda, which aims to leverage technology to drive economic growth and development.

“With increased revenue from tariffs, telecom operators will be able to invest in expanding their networks, improving internet speeds, and developing new digital services, ultimately supporting the government’s efforts to create a more digital and connected society.”

The coalition commended President Tinubu’s administration for its efforts to reform the telecom sector, ensuring its sustainability and growth.

READ ALSO: Telecoms workers union rejects NLC’s planned protest over 50% tariff hike 

Agabi said the President’s commitment to creating a conducive business environment is laudable, and the coalition believes that this tariff adjustment is a step in the right direction.

He urged the NLC to reconsider its stance and engage in constructive dialogue with the NCC and other stakeholders.

“We warn the NLC that its actions may have unintended consequences, including harming the very people it claims to represent,” Dr. Agabi said.

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

The coalition urged Nigerians to look beyond the short-term pains of the tariff hike and consider the long-term benefits it will bring to the telecom sector and the economy as a whole.

According to Agabi, a stronger and more sustainable telecom sector will create jobs, stimulate economic growth, and improve the overall quality of life for Nigerians.