The National Association of Telecommunication Subscribers (NATCOMS) has distanced itself from the planned industrial action by the Nigeria Labour Congress (NLC) against the recently announced increase in telecom tariffs.
NATCOMS President, Mr. Deolu Ogunbanjo, speaking in Lagos on Thursday, described the proposed protest as unnecessary and counterproductive, warning that such action could harm investor confidence in Nigeria’s telecom sector.
The controversy began when the Nigerian Communications Commission (NCC), the regulatory body overseeing the telecom industry, approved a 50% increase in tariffs. The adjustment, announced earlier this week, is aimed at addressing the rising operational costs faced by service providers.
Why the Tariff Hike?
The NCC justified the tariff adjustment by pointing to challenges in the industry, including inflation, increased energy costs, and the weakening naira. According to the commission, the hike is less than the 100% increase initially requested by some telecom operators.
In a statement, the NCC explained its decision was made after extensive consultations with stakeholders across the public and private sectors. The goal, it said, was to balance consumer interests with the sustainability of the industry.
“The NCC remains committed to protecting telecom consumers while ensuring that operators can continue to invest in infrastructure and innovation,” the commission stated.
The NCC also emphasized that the adjustment would ultimately improve service quality, expand network coverage, and enhance customer experiences.
NLC’s Opposition
The NLC, led by its president, Mr. Joe Ajaero, has rejected the tariff hike outright, calling it a burden on already struggling Nigerians. Ajaero argued that the 50% increase is excessive and urged the government to halt its implementation.
In a statement, Ajaero called for a reasonable discussion on the matter, suggesting that any necessary adjustments should be minimal and considerate of the financial realities faced by Nigerian households.
The NLC is mobilizing workers and citizens for possible nationwide action, including a boycott of telecom services, to pressure the government into reversing the decision.
“This is about defending our dignity, rights, and survival as a people,” Ajaero said. “The NLC will not stand by while policies that entrench poverty and inequality are implemented. We will resist this injustice and demand that the government prioritize the welfare of its citizens.”
NATCOMS’ Perspective
While NATCOMS shares concerns over the tariff hike, it has rejected the NLC’s call for industrial action. Ogunbanjo stressed that protests could harm Nigeria’s reputation among investors and businesses, potentially causing more harm than good.
“NATCOMS is not in support of the NLC’s proposed industrial action,” Ogunbanjo said. “Negotiations are ongoing, and there is still time to resolve this issue before the tariff hike takes effect in February.”
The NATCOMS president revealed plans to meet with the NCC to seek a compromise that benefits consumers without destabilizing the industry. He emphasized the importance of dialogue and consultation as the first steps in addressing grievances.
“If these efforts fail, NATCOMS will explore legal action to challenge the hike,” Ogunbanjo added. “But we must exhaust all negotiation avenues first.”
NCC’s Defence
The NCC has maintained that the tariff adjustment is necessary to sustain the industry. It cited Section 108 of the Nigerian Communications Act, 2003, which grants it the authority to regulate and approve tariff rates.
The commission acknowledged the public’s concerns but highlighted the importance of maintaining a healthy telecom sector. It also assured Nigerians that the implementation of the tariff adjustment would be transparent and fair to consumers.
According to the NCC, the increase will enable telecom operators to continue investing in infrastructure and innovation, leading to better network quality, expanded coverage, and improved customer service.
The Bigger Picture
Telecommunications is a critical sector in Nigeria, supporting millions of jobs and driving economic growth. With over 200 million subscribers, Nigeria is the largest telecom market in Africa. However, the industry has faced significant challenges in recent years, including rising operational costs and the need for continuous investment in infrastructure.
The approved tariff hike comes at a time when many Nigerians are grappling with economic difficulties, including high inflation and unemployment. For many, the additional cost of telecom services is yet another burden in an already challenging economic environment.
Calls for Dialogue
As the February implementation date for the tariff hike approaches, stakeholders are urging calm and dialogue. Many believe that a balanced solution can be reached if all parties prioritize the interests of consumers and the long-term sustainability of the telecom industry.
For now, the debate continues, with NATCOMS advocating for peaceful negotiations and the NLC preparing for mass action. The outcome of this disagreement could set a precedent for how economic policies affecting essential services are handled in Nigeria.
While the NCC insists the tariff hike will lead to long-term benefits for consumers, critics argue that the immediate impact on households must not be overlooked. Nigerians will be watching closely as events unfold in the coming days.
