Nigeria Labour Congress, NLC, said the federal government is prioritising revenue generation over the welfare of citizens by supporting the recent 50 percent increase in telecommunications tariffs.
The tariff hike, announced by the Nigerian Communications Commission, NCC, on Monday, will see MTN, Airtel, Glo and 9mobile charge more for calls and messages.
The move, the first in 11 years justified by the need for telcos to cover inflation and the high cost of operations of over 300 percent, has sparked outrage among citizens, with NLC particularly calling for protest.
Speaking yesterday, the NLC President, Joseph Ajaero criticised government for aligning with telecom companies, while Nigerians grapple with the rising cost of living.
Ajaero, who leads a workforce earning less than $50 monthly as minimum wage, expressed concern that government is neglecting its regulatory responsibilities and acting as though these private telecom companies are public enterprises.
“These corporate entities will be smiling to the bank while poverty among Nigerians continues. That is the challenge we face now. We hear the minister speaking as if these are government-owned businesses.
“When you increase tariffs by 50 percent, aside the taxes government may collect, it is seen as a way to boost government’s revenue. This has been the same approach even in the power sector.
He warned that the tariff increase would disproportionately affect low-income earners, many of whom already struggle to cover basic living expenses.
“Government officials often say that higher tariffs are good, but this only pushes the people further down the poverty line. This is where we disagree. It has not acted as a proper regulator to strike a balance between corporate interests and the welfare of the people.
“Government needs to strike a balance. For someone earning N70,000, paying over N10,000 on this tariff increase alone is significant. How will they afford transportation, housing and other basic needs? It is not realistic because, in reality, there is no housing that costs N10,000 and transportation costs are equally high,” Ajaero said.
The NLC president also criticised government’s reliance on imported telecom and power equipment, arguing that local production of essential components like cables and meters could reduce cost.
The NLC chief urged government to encourage local manufacturing rather than passing the cost of importation onto consumers.
Ajaero criticised officials who defended the tariff hike on the grounds of inflation and operational costs, describing their arguments as a pretext to boost government’s revenue while neglecting the plight of Nigerians.
“The justification for this increase—citing inflation, cost of living and importation of equipment—does not hold when there is potential for local production. Why are we importing cables and other materials that can be manufactured locally?
“For instance, even for metering, we are importing cables. These are items we could produce domestically, but instead, we rely on imports and then blame rising costs on currency value and importation expenses.
“Where did we go wrong that ordinary Nigerians must always bear the brunt? We need to rethink these policies and ensure that people are not left struggling to survive while corporations thrive,” he lamented.
On Wednesday, the union issued a statement warning of potential collective action, including a nationwide boycott of telecom services, to compel government and NCC to reverse the decision.
The National Association of Telecommunications Subscribers will today engage the telecom regulator seeking a possible reversal of the 50 percent telecom tariff hike to 10 percent.
