Civil Society Organizations (CSOs) have suspended their protest against the recent telecom tariff hike after a meeting with the Nigerian Communications Commission (NCC).
This development comes after the NCC approved a 50% increase in mobile telecommunications tariffs, sparking widespread criticism .
The Nigeria Labour Congress (NLC) had initially rejected the tariff hike, calling it “insensitive and unjustifiable” amid the rising cost of living in the country .
The NLC had even threatened to embark on a nationwide protest against the hike.However, after the meeting with the NCC, the CSOs decided to suspend their protest, potentially paving the way for further negotiations or a review of the tariff hike.
The decision was announced at a press briefing in Abuja on Monday, following extensive deliberations and a thorough review of the economic realities impacting telecom service providers. Last week, the NCSCN convened an emergency meeting in response to the Federal Government’s approval of the 50% tariff hike for telecom operators.
The Council, which represents over 620 affiliate organizations, initially condemned the decision and had planned a mass protest to occupy the NCC headquarters and the National Assembly until the government reversed the tariff adjustment.
However, within 24 hours, the NCC responded proactively and reached out to initiate talks. In response, the NCSCN assembled a delegation of 11 members for a four-hour meeting with NCC officials.
NCSCN Executive Director, Blessing Akinlosotu, said that the Council entered the meeting expecting to challenge the tariff hike. However, after detailed presentations, economic assessments, and operational data were shared, the Council reconsidered its position.
To ensure an impartial review, the NCSCN established a five-person technical committee to conduct a forensic analysis of telecom providers’ operational costs, financial records, and profit margins. Akinlosotu explained,
“After a tense and robust engagement with the NCC management, we set up a technical committee to carefully study the documents and assess the operational costs and profit margins of telecom operators.”
The committee’s findings revealed that telecom operators had not raised tariffs since 2013, despite the effects of inflation and challenging economic conditions.
The cost of electricity and diesel has soared, putting significant pressure on telecom network operations. Additionally, security concerns, including the vandalism of telecom infrastructure, have further strained service providers.
The devaluation of the naira and foreign exchange fluctuations have also made it more expensive to import telecom equipment.
Although the 50% tariff hike represents the upper limit, the NCSCN noted that competition among telecom providers could prevent the full increase from being passed on to consumers.
The NCC also mandated telecom companies to improve service quality, requiring them to upgrade their infrastructure to ensure better network efficiency and service delivery.
The Council found that, even after the increase, Nigeria’s telecom tariffs remain among the lowest globally, with the hike amounting to less than 10 kobo per second.
After reviewing these findings, the NCSCN acknowledged the economic pressures faced by both consumers and telecom providers.
Akinlosotu emphasized that while Nigerians are grappling with severe economic hardship, telecom companies are also struggling with rising operational costs.
The NCSCN recognized the difficult balancing act the NCC faces, trying to protect both consumers and service providers in an unstable economic environment.
The Council urged the NCC to ensure telecom operators comply with the tariff hike conditions, particularly those related to service quality, and called for stronger monitoring to prevent operators from imposing the full 50% increase on consumers.
Telecom providers were advised to keep tariffs as low as possible despite the approved adjustment.
The Council also appealed to the Federal Government to declare a state of emergency in the energy sector, highlighting the high cost of electricity and fuel as major contributors to rising telecom costs.
It further called on the government to implement policies to stabilize the naira and foreign exchange rates, reducing the cost of doing business in the sector.
In light of these findings, the NCSCN announced the cancellation of its planned protest, urging members to “shield their swords for now” and accept the unavoidable tariff adjustment, given the operational challenges faced by service providers.
Akinlosotu also appealed to the Nigerian Labour Congress (NLC) to reconsider its opposition to the tariff increase, pointing out that continued resistance could lead to the collapse of the telecom sector.
He expressed hope that with the right policies in place, Nigeria’s economic conditions would gradually improve. “NCSCN urges Nigerians to keep faith with the NCC, as we have witnessed a high level of patriotism and commitment to the people’s well-being, which has kept telecom tariffs relatively low for years,” Akinlosotu said.
