Telecom tariff hike: Subscribers demand sanctions against telcos, labour orders boycott

Telecom operators are facing a strong backlash from subscribers and workers after implementing a 50 per cent tariff hike without waiting for the outcome of a review process that was agreed upon, prompting the Nigeria Labour Congress to call for a nationwide boycott of telecom services.

While the NLC has called for a boycott and a nationwide shutdown starting March 1, the subscriber group – the National Association of Telecommunications Subscribers, distanced itself from this approach.

Instead, subscribers insist that the Nigerian Communications Commission must sanction operators for proceeding with the increase without approval, emphasising that the telecom companies’ actions undermine the review process and disregard the concerns of Nigerian consumers.

Initially, the NLC had planned a strike on February 4, 2025, to protest the hike, but the action was called off following a stakeholders’ meeting with the Federal Government through the NCC on February 3.

The meeting resulted in the formation of a 10-person review panel, tasked with making recommendations on the tariff issue, with a deadline set for February 17. Despite this, telecom operators proceeded with the tariff increase, effectively bypassing the panel’s process.

This call from the labour union came barely 24 hours after the House of Representatives directed the telecom regulator and the Minister of Communications, Innovation, and Digital Economy to suspend the tariff hike.

The lawmakers argued that in light of rising inflation and the removal of fuel subsidies, Nigerians could not afford higher telecom costs.

Although telecom operators had agreed to begin implementing the 50 per cent hike on Monday, only MTN, the country’s biggest operator with over 80 million subscribers had initiated the increase by Tuesday, with other operators (Airtel, Glo, 9mobile) yet to act at the time of filing this report.

In a communique signed by NLC President Joe Ajaero and General Secretary Emma Ugboaja following a meeting of the union’s Central Working Committee in Lokoja on Tuesday, the union accused telecom companies of breaching public trust and flouting due process by implementing the controversial tariff hike before the 10-man review panel had completed its deliberations.

The NLC further chastised the government for its failure to safeguard citizens from corporate exploitation.

As part of its initial response to the tariff increase, the NLC had called on Nigerian workers and sympathetic citizens to boycott the services of MTN, Airtel, and Glo daily from 11:00 am to 2:00 pm, starting February 13 and continuing through February 2025.

In its latest communique, the union stated, “All workers and citizens are urged to suspend the purchase of data from these companies, which have become among the most significant tools for exploiting Nigerian citizens. We also demand the repatriation of all funds unlawfully siphoned out of the country by these firms.”

The union gave the telecom companies until the end of February 2025 to reverse the tariff increase, warning that if the operators fail to comply, a nationwide shutdown of their services will be enforced starting March 1, 2025.

The NLC instructed its state councils to immediately begin sensitising and mobilising their members, as well as the general public, in their regions.

Additionally, it requested its affiliate unions to encourage members across the country to observe “electronic silence” during the designated hours of protest.

Meanwhile, the telecom subscribers group led by Deolu Ogunbanjo told our correspondent that the agreement between the NLC and FG was undermined by the telcos.

“The telcos didn’t wait for the two-week period or the end of the month. So, why did the telcos proceed with the tariff increase without considering the agreement made with the NLC?” he stated.

The group, which is clamouring for a 10 per cent increase from 50 per cent, stated that it was awaiting the outcome of the panel to determine whether it would proceed to court.

“All we wanted was that, during an emergency meeting last Friday, we suggested that rather than going straight to court, we could first consider the outcome of the protest and the panel being set up by the NLC.”

Ogunbanjo also proposed alternatives to the immediate tariff hike, suggesting that a phased increase could have been negotiated.

“We proposed a 10 per cent increase as an alternative or even a 30 per cent increase in phases. Just like the fuel price hike, which was phased from N200 to N600, such a phased increase could have been negotiated,” he said.

While NATCOMS has not called for a boycott, Ogunbanjo demanded that the tariff increase be reversed until the panel submits its report. “Why set up a panel if you are not going to follow through with it? It’s hypocritical of the regulator,” he said.

“In fact, any telco that has already implemented the tariff increase without approval from the regulator should be sanctioned because the regulator had agreed with the NLC to bring all stakeholders to the table for discussion first. After that, anything could happen, but for now, any telco that has increased its tariff must be sanctioned.”

The NCC’s Director of Public Affairs, Reuben Muoka, said he had not yet heard about the NLC’s call for a boycott, adding that the Commission would not comment on the matter at this time.

“We will not engage on this issue,” he told our correspondent.

Regarding the House of Representatives’ call to suspend the tariff hike, Muoka declined to comment.

The Secretary-General of the Private Telecommunications and Communications Senior Staff Association of Nigeria, Abdullahi Okonu, expressed support for the ongoing tariff increase by telecom operators but acknowledged concerns raised by the Nigeria Labour Congress over the implementation process.

Okonu stated, “Our stance remains the same—we are in total support of the tariff increase. However, on this particular matter, I think NLC has a valid point. The federal government called them for a meeting, and they agreed that a 10-man committee would be set up,” he told The PUNCH.

“They were given two weeks to resolve the issue, but I don’t think the two weeks had passed before the implementation began. What would have been best is if they had waited and resolved whatever issues needed to be addressed before proceeding with the implementation.”

Despite this, Okonu reaffirmed that PTECSSAN’s position remains unchanged. “We fully support the tariff increase, as long as other factors, such as electricity, fuel, and the devaluation of the naira, remain high. As long as these factors continue to be so expensive, our stance will remain the same—supporting the increase,” he added.

The Chairman of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere, expressed concerns over the ongoing debate surrounding the recent tariff hikes implemented by telecom operators, suggesting that the approach taken by critics may be flawed.

“I think they’re going about it the wrong way—completely the wrong way,” said the ATCON chairman. “It’s just the way they are looking at it. So, what do they want? What does the customer want? Do they want good service, cheap service, or no service at all?

“If you continue like this, someone will tell you that they cannot continue providing this service. If they keep going, the service will not be provided at all. You can’t force it; it’s not a government-funded thing. That’s the mistake they are making.”

The chairman further drew an analogy to highlight the issue, likening it to a consumer demanding lower prices at a market without regard for the cost of providing the goods.

“It’s not like government funding, do you understand? It’s like someone going to the market and saying, ‘You’re selling tomatoes; if you don’t lower the price, I won’t buy any.’ That doesn’t make sense. What’s the point of closing down the market over that?”

Reflecting on recent statements from the House of Representatives, which suggested that telecom companies should focus on improving service quality before increasing tariffs, the chairman acknowledged the complexity of the issue.

“As for what I heard from the House of Representatives, I can understand that. They said quality of service should improve first, but it’s a chicken-and-egg situation. Which one comes first? Are you giving me money to improve the quality of service? No. So, I don’t know,” Emoekpere.

The NCC announced the tariff hike on January 20, citing rising operational costs and the need to ensure the long-term sustainability of the telecommunications sector.

The regulator underscored that the decision aligns with its regulatory mandate under Section 108 of the Nigerian Communications Act, 2003.

Despite the backlash, telecom operators argue that call and messaging tariffs have remained static for years, even as they grapple with soaring operational costs driven by inflation, exchange rate fluctuations, and the heavy investments required to meet growing consumer demand.

According to industry data, running costs have surged by over 300 per cent in the last 18 to 24 months, forcing operators to scale back investments in network infrastructure as they focus on managing foreign exchange exposure and rising expenses.

An internal document from MTN Nigeria, obtained by The PUNCH, revealed that the telecom sector could experience a significant $870m drop in capital expenditures by 2026 due to an 11-year delay in tariff adjustments.