THE Nigeria Labour Congress (NLC) has rejected the Federal Government’s proposed 50% telecom tariff increase, arguing that it is unsustainable given the economic hardship Nigerians are already facing due to high energy costs.
Speaking in an interview today, NLC spokesperson, Benson Upah criticized the government for implementing policies aligned with Bretton Woods institutions, stating that subsidy removals and rising tariffs are placing an unbearable financial burden on citizens.
“They keep pushing us to the brink with excessive taxes. A time will come when people may have the money to pay but will refuse to do so,” Upah warned.
The labour union strongly opposed the Nigerian Communications Commission’s (NCC) plan to increase telecom tariffs by 50%, instead proposing a more modest 5% hike in the cost of calls and data.
Upah reaffirmed that the NLC will go ahead with its planned nationwide protest on Tuesday, February 4, 2025, to demonstrate against the tariff increase.
“This protest is aimed at stopping this unreasonable tariff hike. If there must be an increase, given the economic realities, it should be no more than 5%.
“But a 50% increase? That’s simply unacceptable. How will ordinary Nigerians cope when energy tariffs have already surged? Manufacturers are struggling, the middle class is under pressure, and many can’t even afford to turn on their lights at home. Lower taxes encourage compliance, but higher taxes only make things worse,” he argued.
The World Bank and the International Monetary Fund (IMF) have continuously advocated for the removal of energy subsidies and the floating of the naira, arguing that Nigeria’s failure to implement these measures has fueled severe inflation.
Following his inauguration in May 2023, former governor of Lagos, Bola Tinubu, eliminated the petrol subsidy and floated the naira. This led to a sharp increase in petrol prices, soaring from under N200 per litre to over N1,100 in some areas, while the naira depreciated drastically from about N700/$ to N1,600/$.
As a result, food and commodity prices have surged, plunging Nigerians into what is arguably the most severe cost-of-living crisis since the country’s independence over six decades ago.