Telecom tariff hike: Subscribers demand sanctions against telcos, labour orders boycott

Telecommunication

Telecom operators are facing a strong backlash from subscribers and workers after implementing a 50 per cent tariff hike without waiting for the outcome of a review process that was agreed upon, prompting the Nigeria Labour Congress to call for a nationwide boycott of telecom services.

While the NLC has called for a boycott and a nationwide shutdown starting March 1, the subscriber group – the National Association of Telecommunications Subscribers, distanced itself from this approach.

Instead, subscribers insist that the Nigerian Communications Commission must sanction operators for proceeding with the increase without approval, emphasising that the telecom companies’ actions undermine the review process and disregard the concerns of Nigerian consumers.

Initially, the NLC had planned a strike on February 4, 2025, to protest the hike, but the action was called off following a stakeholders’ meeting with the Federal Government through the NCC on February 3.

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The meeting resulted in the formation of a 10-person review panel, tasked with making recommendations on the tariff issue, with a deadline set for February 17. Despite this, telecom operators proceeded with the tariff increase, effectively bypassing the panel’s process.

This call from the labour union came barely 24 hours after the House of Representatives directed the telecom regulator and the Minister of Communications, Innovation, and Digital Economy to suspend the tariff hike.

The lawmakers argued that in light of rising inflation and the removal of fuel subsidies, Nigerians could not afford higher telecom costs.

Although telecom operators had agreed to begin implementing the 50 per cent hike on Monday, only MTN, the country’s biggest operator with over 80 million subscribers had initiated the increase by Tuesday, with other operators (Airtel, Glo, 9mobile) yet to act at the time of filing this report.

In a communique signed by NLC President Joe Ajaero and General Secretary Emma Ugboaja following a meeting of the union’s Central Working Committee in Lokoja on Tuesday, the union accused telecom companies of breaching public trust and flouting due process by implementing the controversial tariff hike before the 10-man review panel had completed its deliberations.

The NLC further chastised the government for its failure to safeguard citizens from corporate exploitation.

As part of its initial response to the tariff increase, the NLC had called on Nigerian workers and sympathetic citizens to boycott the services of MTN, Airtel, and Glo daily from 11:00 am to 2:00 pm, starting February 13 and continuing through February 2025.

In its latest communique, the union stated, “All workers and citizens are urged to suspend the purchase of data from these companies, which have become among the most significant tools for exploiting Nigerian citizens. We also demand the repatriation of all funds unlawfully siphoned out of the country by these firms.”

The union gave the telecom companies until the end of February 2025 to reverse the tariff increase, warning that if the operators fail to comply, a nationwide shutdown of their services will be enforced starting March 1, 2025.

The NLC instructed its state councils to immediately begin sensitising and mobilising their members, as well as the general public, in their regions.

Additionally, it requested its affiliate unions to encourage members across the country to observe “electronic silence” during the designated hours of protest.

Meanwhile, the telecom subscribers group led by Deolu Ogunbanjo told our correspondent that the agreement between the NLC and FG was undermined by the telcos.

“The telcos didn’t wait for the two-week period or the end of the month. So, why did the telcos proceed with the tariff increase without considering the agreement made with the NLC?” he stated.

The group, which is clamouring for a 10 per cent increase from 50 per cent, stated that it was awaiting the outcome of the panel to determine whether it would proceed to court.

“All we wanted was that, during an emergency meeting last Friday, we suggested that rather than going straight to court, we could first consider the outcome of the protest and the panel being set up by the NLC.”

Ogunbanjo also proposed alternatives to the immediate tariff hike, suggesting that a phased increase could have been negotiated.

“We proposed a 10 per cent increase as an alternative or even a 30 per cent increase in phases. Just like the fuel price hike, which was phased from N200 to N600, such a phased increase could have been negotiated,” he said.

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While NATCOMS has not called for a boycott, Ogunbanjo demanded that the tariff increase be reversed until the panel submits its report. “Why set up a panel if you are not going to follow through with it? It’s hypocritical of the regulator,” he said.

“In fact, any telco that has already implemented the tariff increase without approval from the regulator should be sanctioned because the regulator had agreed with the NLC to bring all stakeholders to the table for discussion first. After that, anything could happen, but for now, any telco that has increased its tariff must be sanctioned.”

The NCC’s Director of Public Affairs, Reuben Muoka, said he had not yet heard about the NLC’s call for a boycott, adding that the Commission would not comment on the matter at this time.

“We will not engage on this issue,” he told our correspondent.

Regarding the House of Representatives’ call to suspend the tariff hike, Muoka declined to comment.

The Secretary-General of the Private Telecommunications and Communications Senior Staff Association of Nigeria, Abdullahi Okonu, expressed support for the ongoing tariff increase by telecom operators but acknowledged concerns raised by the Nigeria Labour Congress over the implementation process.

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