NLC Halts Protest as FG Approves 35% Telecom Tariff Hike – What It Means for Nigerians

NLC Shelves March 1 Protest as FG, Labour Reach Agreement on 35% Telecom Tariff Hike

The Nigeria Labour Congress (NLC) has called off its planned nationwide protest scheduled for March 1, 2025, after reaching an agreement with the Federal Government to reduce the proposed telecommunications tariff hike from 50% to 35%.

Background: A Controversial Hike

The tariff increase, initially announced by the Nigerian Communications Commission (NCC) on January 20, 2025, marked the first major adjustment in telecom charges in over a decade. Telecom operators had initially pushed for a 100% hike, citing rising operational costs driven by inflation and currency depreciation. However, following public outcry and negotiations with the government, the proposed increase was lowered to 50%.

The NLC strongly opposed the hike, calling it an additional financial burden on already struggling Nigerians. The union had threatened mass protests but engaged in further negotiations with the government, leading to a compromise at 35%.

Labour, Consumer Advocates React to the Agreement

A source within the NLC confirmed that a 10-member committee had been formed to deliberate on the tariff hike, ultimately settling on a 35% increase. When asked about the fate of the planned protest, the source stated, “That should be obvious.”

Despite the reduction, labour leaders and consumer advocacy groups remain critical of the hike. The Chairperson of the Lagos State chapter of the NLC, Funmi Sessi, described the government’s approval of a 35% increase as unfair, warning that many Nigerians were already struggling to afford basic services.

Similarly, the President of the National Association of Telecommunications Subscribers (NATCOMS), Adeolu Ogunbanjo, acknowledged the role of consumer advocacy in securing the 15% reduction but insisted that more relief measures were necessary.

“We fought, and at least a 15% reduction is something,” Ogunbanjo said. However, he expressed concern that NATCOMS was not included in the committee that reviewed the rates, questioning the transparency of the decision-making process.

Effects of the 35% Tariff Hike on Telecom Users

While the reduction from 50% to 35% may seem like a win for consumers, it still presents challenges for telecom service users, particularly low-income earners and small businesses that rely heavily on mobile data and voice calls.

1. Higher Costs for Consumers: The new tariff means users will have to pay significantly more for data and calls. This could limit access to digital services, online learning, and social interactions, especially for those in rural areas.


2. Impact on Small Businesses: Many small businesses depend on affordable telecom services for marketing, transactions, and customer communication. Higher tariffs could reduce their ability to compete effectively.


3. Reduced Internet Accessibility: Nigeria has seen tremendous growth in internet penetration, but higher costs could slow down adoption rates, making digital inclusion harder to achieve.


4. Potential Service Quality Improvements: On the flip side, telecom operators argue that the increase is necessary to maintain and improve network quality, expand infrastructure, and keep up with global technological advancements.



What Next? Calls for More Relief Measures

As stakeholders digest the new tariff structure, calls for additional relief measures are growing. Advocacy groups like NATCOMS are urging telecom companies to consider further reductions or introduce cost-saving packages for low-income earners.

Meanwhile, neither the NCC nor industry groups such as the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) have officially responded to the latest developments.

Conclusion

The NLC’s decision to shelve the protest following the tariff reduction signals a temporary resolution, but the broader concerns about affordability and access to telecom services remain. With many Nigerians already battling economic hardships, the real impact of this hike will become clearer in the coming months as consumers adjust to the new rates.

What are your thoughts on the 35% telecom tariff increase? Share your opinions in the comment section.