The Nigeria Labour Congress (NLC) has fiercely condemned the recent 50% tariff hike approved by the Nigerian Communications Commission (NCC) for telecommunications operators, calling it an “assault on the welfare of Nigerians.”

Similarly, the Socio-Economic Rights and Accountability Project (SERAP) has issued a stern warning to the federal government, threatening legal action if the hike is not reversed.

The approval, which raises call rates from N12 to N18 per minute, SMS charges from N4 to N6, and data costs from N300 to over N400 per gigabyte, has sparked intense debate among stakeholders, consumer advocacy groups, and ordinary Nigerians. The NLC and SERAP argue that the increase further burdens already overstretched consumers, many of whom are grappling with declining purchasing power amid the country’s severe economic challenges.

In a statement signed by NLC President Joe Ajaero, the labor movement described the hike as “ill-advised,” urging the federal government, NCC, and the National Assembly to halt its implementation. Ajaero noted that the increase disproportionately affects the average Nigerian worker, who already spends approximately 10% of their wages on telecommunication services.

“For a worker earning the current minimum wage of N70,000, this means an increase from N7,000 to N10,500 per month—15% of their salary—a cost that is unsustainable,” the NLC stated.

The union accused the government of prioritizing corporate profits over citizens’ welfare, highlighting the rapid approval of the tariff hike in contrast to the delay in approving the new minimum wage.

“This hike exemplifies the government’s apparent ease in siding with corporate interests rather than addressing the needs of its citizens. We call on Nigerian workers to prepare for collective action, including the possibility of a nationwide boycott of telecommunication services, to compel a reversal of this punitive increase,” the NLC added.

SERAP Threatens Legal Action

The Socio-Economic Rights and Accountability Project (SERAP) has also voiced strong opposition, warning the government to reverse the increase or face a lawsuit.

“The Tinubu administration and telcos must immediately reverse the unlawful increase in calls and data costs. We’ll see in court if the 50% tariff hike is not reversed within 48 hours,” SERAP declared in a statement.

FCCPC and NCC Defend the Hike

In response to the backlash, the Federal Competition and Consumer Protection Commission (FCCPC) stressed the importance of ensuring the tariff increase leads to tangible service improvements.

“Consumers can expect a mandatory disclosure table from their service providers, enabling them to make informed decisions without worrying about unexpected charges,” said Ondaje Ijagwu, FCCPC Director of Corporate Affairs.

The NCC, in its defense, described the hike as a “rationalized adjustment” meant to address the surging operational costs faced by telecom operators due to inflation, foreign exchange volatility, and insecurity. It argued that the 50% increase was more measured than the over 100% initially proposed by operators.

Telcos Caught in the Middle

The development is a reflection of the precarious situation of Nigeria’s telecommunications operators, caught between consumers’ dwindling purchasing power and operational losses. Industry proponents argue that inflation, which has surged from 9% a decade ago to over 30% today, alongside high diesel costs and insecurity, has made business unsustainable.

Speaking on the issue, President of the Association of Telecommunications, Information Technology, Cable Satellite Network Operators and Allied Services Employers’ of Nigeria (ATICEN), Adede John Williams, emphasized the sector’s significant contributions to Nigeria’s economy.

“The telecommunications sector plays a pivotal role in driving foreign direct investment and GDP growth. Collaborative efforts between consumers and operators are essential to ensure sustainable development in the sector,” Williams said.

A legal expert, Frank Tietie, criticized the NCC for failing to hold public inquiries as stipulated under Sections 57 and 58 of the NCC Act.

“There must be public hearings where consumers can represent their grievances and demand accountability. Nigerians deserve a platform to question poor service quality and the lack of investment in sustainable energy alternatives like solar power,” Tietie said.

He dismissed the reliance on diesel as outdated, urging operators to explore green energy solutions. He also pointed to unresolved systemic issues, such as debts between telecom operators and banks over USSD charges, as inefficiencies being unfairly transferred to consumers.