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Why We Rejected Proposed Tariff Hike – NLC

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The president of the Nigeria Labour Congress, NLC, Comrade Joe Ajaero, has again kicked against the proposed 50% hike in telecom tariffs by the Nigerian Communications Commission, NCC, in collaboration with telecom operators.

Ajaero, who was speaking on Channels TV on Thursday, described the move as an undue burden on Nigerians.

According to him, the citizens are already grappling with rising inflation, high transportation costs, increased electricity tariffs, and the general economic downturn.

He questioned the rationale behind the proposed hike, particularly given the significant growth of the telecom sector over the years.

Ajaero said: “When GSM operators began operations in Nigeria, the subscriber base was below 50,000. Today, the market has expanded to over 200 million active lines. Despite this, the sector is claiming it cannot sustain operations without a 50% increase in tariffs. This reasoning does not align with the reality of their profitability.”

The NLC President further emphasized that, “the proposed tariff hike would worsen inflation, aggravating the economic hardship faced by millions of Nigerians.

“Increasing tariffs in the telecom sector, like in the power sector, creates a vicious cycle of inflation. Nigerians, who are already bearing the brunt of economic pressures, cannot afford to shoulder another burden,” he stated.

Ajaero noted: “The principle of stakeholder consultation is central to tariff modeling. Unfortunately, this has been ignored. Decisions of this magnitude cannot be made without input from key stakeholders, including labor unions, civil society organizations, and consumers.”

While rejecting the proposed hike outright, he called for immediate stakeholder engagement to explore sustainable alternatives that do not jeopardize the livelihood of Nigerians.

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