The Nigeria Labour Congress (NLC) has strongly condemned the recent 50% increase in telecommunications tariffs, claiming that the Federal Government is prioritizing revenue generation over the welfare of citizens. The hike, announced by the Nigerian Communications Commission (NCC) on January 22, 2025, will see major telecom companies like MTN, Airtel, Glo, and 9mobile raise prices on calls and messages.
The tariff increase, the first in 11 years, has been justified by telecom companies as a necessity to cover inflation and the rising costs of operation, which have surged by over 300%. However, this justification has sparked outrage among Nigerians, with the NLC calling for protests to oppose the decision.
In a televised interview with Arise TV on Friday, NLC President Joseph Ajaero criticized the government for aligning with private telecom companies while citizens continue to face the burden of skyrocketing living costs. Ajaero, whose organization represents workers earning less than $50 monthly as minimum wage, expressed concern that the government is failing to regulate these private entities, which are making significant profits at the expense of Nigerians.
Ajaero stated, “These corporate entities will be smiling to the bank while poverty among Nigerians continues. The government is neglecting its regulatory duties, acting as though these companies are public enterprises.” He argued that while the tariff increase might boost government revenue through taxes, it further deepens the struggle of low-income earners who are already grappling with high transportation, housing, and food costs.
For many Nigerians, especially those earning the current minimum wage of N70,000, the additional cost of over N10,000 due to the tariff increase is unsustainable. Ajaero emphasized that such expenses will push families deeper into poverty, making basic needs unaffordable.
In addition to the tariff hike, Ajaero criticized the government for its reliance on imported telecom and power equipment, which he believes unnecessarily increases costs. He suggested that the government should focus on encouraging local manufacturing of essential components like cables and meters to reduce dependency on imports and mitigate costs for consumers.
“The justification for this increase—citing inflation, cost of living, and importation of equipment—doesn’t hold when there’s potential for local production,” Ajaero said. “Why are we importing cables and materials that we could manufacture ourselves?”
The NLC has called for immediate action to reverse the tariff increase and is considering organizing a nationwide boycott of telecom services if the government and the NCC do not address the issue. Additionally, the National Association of Telecommunications Subscribers plans to engage the NCC to push for a reduction in the tariff hike to no more than 10%.
The government’s decision has sparked heated debates, with many Nigerians questioning whether the needs of ordinary citizens are being overlooked in favor of corporate interests. The NLC is now rallying support from citizens to advocate for a more balanced approach that takes into account both the sustainability of telecom companies and the financial well-being of the people.
