The Nigerian Labour Congress and Federal Government has raised a technical committee to submit its report in two weeks after the labour union on Monday suspended a planned nationwide strike over the recent approval of 50% telecoms tariff increase by the industry regulator.
This 14-day window is one of the key decisions reached following a meeting between the Federal Government and NLC to address the labour union’s opposition to the 50% telecoms tariff increase approved by the Nigerian Communications Commission (NCC), the nation’s telecoms industry regulator.
If implemented, Comrade Joe Ajaero, NLC President says, the 50% telecoms tariff increase will place more burden on Nigerian workers.
This 14-day window is one of the key decisions reached following a meeting between the Federal Government and NLC to address the labour union’s opposition to the 50% telecoms tariff increase approved by the Nigerian Communications Commission (NCC), the nation’s telecoms industry regulator.
NLC: Telecoms tariff increase prioritises corporate profits over citizens’ welfare
“The NLC,” Ajero says in the wake of the January 20 announcement of the tariff increases by NCC, “expresses its unequivocal condemnation of the Federal Government’s recent approval, through the Nigerian Communications Commission, NCC, of a 50 percent increase in telecommunication tariffs.”
According to him, “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.”
The NLC President says that “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 ₦70,000, this means an increase from ₦7,000 to a staggering ₦10,500 per month or 15 percent of his salary — a cost that is unsustainable. This hike exemplifies the government’s apparent ease in prioritizing corporate profits over citizens’ welfare.”
NLC had further pressed home its opposition to the telecoms tariff increase by calling for a nationwide protest to begin today, a development that made the Federal Government to wade in to avert the labour union’s anti-telecoms price increase action.
Following yesterday’s meeting both parties agreed to raise a technical committee with 50-50 membership to address the issues involved in the tariff increase.
“There is a need for parties to sit together in a technical group to resolve most of the thorny areas during the discussion,” according to the communique reached at the end of the meeting and seen by Technology Times.
The pact was jointly signed by Senator George Akume, Secretary to The Government of The Federation; Muhammadu Maigari Dingyad, Minister of Labour and Employment; Comrade Joe Ajaero, President of Nigeria Labour Congress and Comrade Emmanuel Ugboaja, General Secretary of NLC.
The meeting consequently raised a 10-man joint committee with five members from the Federal Government and five from labour tasked with addressing the “thorny areas” of the telecoms tariff increase.
The committee is expected to conclude and submit its report within two weeks from Monday, February 3, 2025.
“The parties call on Nigerian people to remain calm while this Committee concludes its assignment,” according to the decision of the meeting.
The NCC, through its spokesman, Reuben Muoka, announced the tariff increase that has been trailed by controversy when the telecoms says it “will be granting approval for tariff adjustment requests by Network Operators in response to prevailing market conditions.”
The adjustment, the NCC says, “capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”
The adjustment, the NCC says, “capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”
NCC: 50% telecoms increase lower than 100% requested by operators
The telecoms regulator says that the adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study and requests will be reviewed on a case-by-case basis as is its standard practice for tariff reviews.
The regulator says the tariff increase will be implemented in strict adherence to its recently-issued NCC Guidance on Tariff Simplification, 2024.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised. 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,” according to Muoka.
Recognizing the concerns of the public, the regulator’s spokesman says that “this decision was made after extensive consultations with key stakeholders across the public and private sectors. The NCC has prioritised striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.”
The NCC says that it “recognizes the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments. To this end, the Commission has mandated that operators implement these adjustments transparently and in a manner that is fair to consumers. Operators are also required to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery.”
Muoka says that NCC remains committed to “fostering a resilient, innovative, and inclusive telecommunications sector. Beyond protecting consumers, the Commission’s actions are designed to ensure the long-term sustainability of the industry, support indigenous vendors and suppliers, and promote the overall growth of Nigeria’s digital economy.”
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