Tariff hike: Telecom workers eye salary reforms

Telecom workers, under the aegis of the Private Telecommunications and Communications Senior Staff Association of Nigeria, are hopeful that the 50 per cent increase in telecommunications tariffs will pave the way for much-needed salary hikes after years of stagnation.

The Secretary-General of the association, Abdullahi Okonu, told The PUNCH on Tuesday that the tariff increase is expected to help telecom companies generate the necessary revenue to address long-standing pay disparities.

He explained that the previous situation had become unsustainable, as businesses struggled to cover operational costs while workers faced stagnant wages.

The tariff was approved by the Nigerian Communications Commission on 20 January, and telcos expect the implementation to commence in weeks after sending their tariff bids to regulators.

Meanwhile, the NCC’s announcement triggered a nationwide controversy among various stakeholders, prompting the Nigeria Labour Congress to call for a protest scheduled for Tuesday, February 4, 2025.

However, after a high-level meeting with representatives of the Federal Government, the NLC suspended its protest plans. Both parties agreed to negotiate and resolve the dispute within a two-week period.

Telecom tariffs remained static despite inflation, naira devaluation, and rising costs, forcing operators like MTN and Airtel to absorb losses.

Prolonged regulatory delays in adjusting prices despite surging operational costs led to $11.3bn in losses, reduced infrastructure spending, and deteriorating service quality.

Okonu said telcos aren’t fully deregulated as they will always need approval from the NCC to make any tariff adjustment, a long-standing embargo that has negatively impacted the telecom sector.

“Employers have been struggling with stagnant revenues, resulting in stagnant salaries for workers, even as other sectors saw salary increases along with the new minimum wage. We are hopeful that with the tariff increase, employers will now be able to accommodate salary hikes as well,” he stated.

The association praised the NLC’s decision to suspend the protest, calling it a pragmatic move. Okonu said the suspension reflected a shared understanding that, although the tariff increase could be challenging for consumers, it would provide the necessary financial support for improvements within the sector.

By agreeing to negotiate with the federal government, the NLC signalled its commitment to resolving the issue in a way that benefits both telecom workers and the financial health of the industry, Okonu added.