Telecom Tariff Hike Sparks Backlash as NLC Calls for Boycott and Subscribers Demand Sanctions
Telecom operators in Nigeria are facing a strong backlash after implementing a 50% tariff hike despite an ongoing review process. The Nigeria Labour Congress (NLC) has called for a nationwide boycott of telecom services, which will begin on March 1, 2025, if the hike is not reversed by the end of February. This decision follows the telecom operators’ actions, which critics argue undermined an agreement with the Federal Government and ignored the 10-person review panel set up to discuss the tariff hike.
The NLC had initially planned a strike in early February, which was called off after a meeting with the Nigerian Communications Commission (NCC). However, telecom operators moved forward with the increase ahead of the panel’s February 17 deadline. The operators, including MTN, Airtel, and Glo, argue that the tariff increase is necessary due to rising operational costs, inflation, and the devaluation of the naira. MTN has already implemented the hike, while other operators are yet to follow suit.
Despite the NLC’s call for a boycott, the National Association of Telecommunications Subscribers (NATCOMS) is distancing itself from the approach. Subscribers, led by Deolu Ogunbanjo, are demanding that the Nigerian Communications Commission (NCC) impose sanctions on the telecom companies for implementing the hike without approval. Subscribers are calling for a more gradual tariff increase, with some proposing a phased approach rather than an immediate 50% rise.
The NLC has mobilized workers and citizens for a series of protests, urging them to boycott telecom services from 11:00 am to 2:00 pm daily, starting February 13, 2025. If the tariff hike is not reversed, the NLC has threatened a nationwide shutdown of telecom services on March 1, 2025. The union also calls for the repatriation of funds that it claims were unlawfully taken out of the country by the telecom operators.
Telecom industry leaders, however, defend the tariff increase, citing the strain of rising costs and declining revenues in a challenging economic environment. The Chairman of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere, stated that the tariff increase is essential for maintaining quality service, but he expressed concerns about the timing of the hike, acknowledging the NLC’s valid point about bypassing the review process. As the dispute continues, the future of telecom services in Nigeria hangs in the balance, with tensions escalating between the government, telecom operators, and consumers.
SOURCE: PUNCH