Thursday, 13 February 2025 04:48

Telecom tariff hike sparks standoff between NLC and operators

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The Nigeria Labour Congress (NLC) has threatened nationwide action against telecommunications companies over a recent 50% tariff increase, setting up a major confrontation between labor unions and telecom operators.

The dispute centers on the telecommunications companies' implementation of a 50% price hike on February 11, despite ongoing negotiations with the government. The NLC claims this increase violates a previous agreement with the Federal Government and the Nigerian Communications Commission (NCC).

Planned Labor Actions

The NLC has announced a two-phase response:

1. Immediate Action (February 13-28, 2025):

   - Daily service boycott of MTN, AIRTEL, and GLO between 11:00 AM and 2:00 PM

   - Call for suspension of data purchases from these providers

2. Escalation (March 1, 2025):

   - Threatened complete shutdown of telecom operations nationwide if companies don't revert to previous tariffs

The labor organization's Central Working Committee, meeting in Lokoja, has directed state councils and affiliated unions to begin mobilizing members and the public for these actions.

Telecom Industry Response

Telecommunications operators have pushed back against the NLC's threats, warning that any attempt to shut down their operations would constitute a treasonable felony due to potential national security implications. The Association of Licensed Telecom Operators in Nigeria (ALTON) defended the price adjustment as necessary, citing:

- Rising operational costs

- Unsustainable current pricing

- Need for infrastructure investment

- Economic factors including currency flotation

ALTON Chairman Gbenga Adebayo emphasized that "telecommunications cannot be used as a subsidy for economic hardship in other sectors" and warned that maintaining artificially low prices could lead to service deterioration and industry collapse.

Regulatory Oversight

The National Association of Telecom Subscribers in Nigeria (NATCOMS) has criticized the NCC's handling of the situation. NATCOMS President Deolu Ogubanjo called for immediate sanctions against operators who implemented the price increase while stakeholder discussions were still pending.

Background

The dispute emerged from a recent meeting between the Federal Government and NLC, where a 10-member committee was formed to evaluate the proposed tariff increase. The committee's two-week deliberation period had not concluded when telecommunications companies implemented the price hike.

The confrontation highlights broader tensions in Nigeria's telecommunications sector as operators attempt to balance service sustainability with affordability amid challenging economic conditions.

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