Telecom Tariff Hike: Subscribers, Labour Union, and Telcos Clash Over 50% Increase
The National Association of Telecommunications Subscribers (NATCOMS) is set to meet with the Nigerian Communications Commission (NCC) on Friday to push for a reduction of the recently approved 50% tariff increase to 10%. Meanwhile, the Nigeria Labour Congress (NLC) has hinted at potential protests against the hike.
The Federal Government had approved a 50% increase after telecom operators initially requested a 100% adjustment. However, dissatisfied subscribers are advocating for a lower adjustment and have threatened to take legal action next week if negotiations fail.
This marks the first tariff increase in over a decade, aimed at revitalizing the struggling telecom sector, which contributes approximately 14% to Nigeria’s economy. However, the decision has sparked widespread debate and opposition.
Labour Union Opposes Tariff Hike
The NLC, led by Joseph Ajaero, strongly criticized the move, arguing that it places an additional financial burden on Nigerian workers, many of whom earn less than $50 per month as minimum wage. The union warned that it might mobilize a nationwide boycott of telecom services to pressure the government and NCC into reversing the decision.
Speaking with The PUNCH on Thursday, NATCOMS President Adeolu Ogunbanjo dismissed the idea of boycotting telecom services, advocating instead for legal action.
“Going to court is the civil way to address this, not boycotting telecom services,” Ogunbanjo stated.
He warned that such actions could harm investor confidence, particularly as President Bola Tinubu’s administration seeks to attract foreign investment.
“We are not supporting the NLC’s stance. It sends the wrong message to investors. These telecom companies are private businesses, and the President is working hard to attract investors. We cannot endorse such recklessness,” he added.
Tariff rates for calls and messages have remained unchanged despite rising inflation, exchange rate fluctuations, and increasing operational costs for telecom companies. These financial pressures have strained the industry, posing risks to its long-term sustainability.
Ogunbanjo emphasized that while telcos need to make a profit, consumers should not be exploited. He also suggested that telecom operators consider raising capital through Initial Public Offerings (IPOs) rather than relying on tariff hikes.
“They should explore stock market options. People will invest. That’s a viable alternative. Protests won’t solve the problem, and boycotting services could do more harm than good,” he added.
NLC Prepares for Protest Actions
NLC spokesperson, Benson Upah, encouraged Nigerians to take peaceful action against the tariff hike, stating that citizens have the right to resist unfavorable policies.
He urged Nigerians to consider peaceful protests or boycotts to express their dissatisfaction.
“The people have a right to protest against policies they find unacceptable. Instead of grumbling, they should engage in peaceful demonstrations to make their voices heard,” Upah stated.
Lagos State NLC Chairman, Sessi Funmi, revealed that the union is considering various actions against telecom companies, including occupying their headquarters.
“We are still deliberating, but we may mobilize Nigerians for a boycott or stage protests at the offices of telecom service providers,” she explained.
Students Demand Immediate Reversal
The National Association of Nigerian Students (NANS) also condemned the tariff hike, labeling it “unjustifiable and inconsiderate.”
In a statement issued on Wednesday, NANS Clerk of the Senate, Oladimeji Uthman, warned that the increase would worsen economic hardships for students and deepen the digital divide.
NANS issued a 72-hour ultimatum to the NCC and the Ministry of Communications and Digital Economy to reverse the decision or face nationwide protests.
“Affordable internet is crucial for bridging the educational gap in Nigeria. This tariff hike will exclude millions of students from accessing quality education,” NANS stated.
The student body warned that if its demands were not met, it would mobilize students, unions, and civil society organizations for large-scale demonstrations.
Finance Minister Justifies Tariff Increase
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, defended the decision, arguing that the adjustment was necessary due to rising inflation and operational costs.
Speaking at the 2025 World Economic Forum in Davos, Switzerland, Edun stated, “Inflation has increased, and this must be reflected in telecom business operations. While tariffs are regulated, prices must be adjusted to sustain the sector.”
He emphasized the importance of the telecom industry to Nigeria’s economy and assured Nigerians that the tariff increase would lead to improved service quality.
“The government expects this adjustment to result in better call connections, fewer dropped calls, and enhanced service delivery,” he added.
Telecom Operators Defend Tariff Adjustment
Telecom operators, including MTN and Airtel, have assured subscribers that the new tariff will help them improve service quality and expand network infrastructure.
Gbenga Adebayor, President of the Association of Telecommunications Companies of Nigeria, highlighted the need for investment in outdated telecom infrastructure.
“Our goal is long-term sustainability. No telecom operator wants to provide poor service. Every minute of uptime contributes to revenue, and we aim to deliver better services to subscribers,” Adebayor stated.
MTN Nigeria CEO, Karl Toriola, described the tariff increase as a crucial step toward sustaining the industry.
“This adjustment is necessary to maintain the critical investments required for delivering reliable, high-quality services to Nigerians,” he stated.
Airtel Nigeria CEO, Dinesh Balsingh, echoed similar sentiments, arguing that the price increase was vital for the survival and growth of the sector.
“The adjustment ensures the sustainability of the telecom industry while safeguarding consumer interests. It allows us to continue investing in network expansion and delivering improved services,” Balsingh noted.
As the NCC moves forward with implementing the tariff hike in February, debates and opposition continue to mount. While telecom operators view the increase as essential for sustainability, consumers, labor unions, and student groups remain firm in their demands for a reversal.
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