Following the Nigerian Communications Commission’s (NCC) recent approval of a 50% rise in telecom charges, the Nigeria Labour Congress has called on Nigerians to get ready for a statewide boycott of telecommunications services.
Following carriers’ demands for cost-reflective charges in the midst of challenging economic conditions, the NCC approved a 50% increase in telephone tariffs on Monday. This increase, which fell short of the 100 percent increase that telcos requested, caused the average cost of calls to go from N11 to N16.5 per minute, the cost of 1GB of data to go from N287.5/GB to N431.25, and the price of SMS to go from N4 to N6.
“Ongoing industry reforms that will positively influence sustainability were taken into consideration when making the adjustment, which is capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators,” the commission stated.
Joe Ajaero, the president of the NLC, denounced the tariff increase in a statement on Wednesday, calling it an unfair burden on people who are already struggling financially. He voiced concerns about the hike’s timing, pointing out that it comes while inflation and purchasing power are on the rise.
He pointed out that since the typical Nigerian worker spends around 10% of their salary on telecom costs, these services have become essential.
“This decision is a blatant assault on the welfare of Nigerian workers and the masses, who are currently facing unprecedented economic hardship, and it is an abandonment of the people to corporate fat cats,” he stated.
“Everyday communication, work, and information access all depend on telecommunication services. However, the typical Nigerian worker already spends about 10% of their income on telecom costs. This constitutes an unsustainable increase from N7,000 to a startling N10,500 per month, or 15% of a worker’s compensation, for someone making the existing minimum wage of N70,000.
Ajaero called for Nigerians to oppose the pricing rise and get ready for a mass boycott of telecom services, among other forms of collective action, to force the increase to be reversed.
NLC disagrees with the authorized rate of rise but is not against a tariff review. Therefore, in order to allow for a rational discussion, we urge the government, the NCC, and the National Assembly to halt the implementation of this foolish raise. We may all look for a more compassionate raise and most definitely not this 50% boost if the discussion believes that the hike is necessary,” he said.
However, the NCC clarified when it announced the tariff hike that the rate adjustment was intended to close the gap between current tariffs and growing operational costs without compromising service delivery to customers.
Telcos had complained that a 300 percent increase in operational costs was forcing them to shut down. The CEO of MTN Nigeria, Karl Toriola, stated in 2024 that the firm will shut down if pricing rises were not enacted.
“By enabling operators to keep investing in infrastructure and innovation, these changes will ultimately benefit consumers by improving services and connectivity, such as increased coverage, improved customer service, and better network quality,” the NCC said.
It emphasized the need to find a balance between safeguarding telecom customers and maintaining the viability of the sector.
Following the rate rise, telcos have been given a duty by the Federal Competition and Consumer Protection Commission (FCCPC) to enhance the quality of their services. It stated in a statement on Wednesday that customers have shown a need for quantifiable enhancements in service quality.
Concerns about network congestion, dropped calls, erratic internet speeds, odd data usage, and subpar customer support have persisted. Therefore, it is essential that tariff changes result in observable and concrete improvements in customer services,” the statement said.
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