NLC Accuses Government of Prioritizing Telco Revenue Over Citizens’ Welfare Amid Tariff Hike
The Nigeria Labour Congress (NLC) has criticized the Federal Government for prioritizing revenue generation at the expense of citizens’ welfare by endorsing the recent 50% increase in telecommunications tariffs.
The hike, announced by the Nigerian Communications Commission (NCC) on Monday, will lead to higher charges for calls and messages from major providers like MTN, Airtel, Glo, and 9mobile. This marks the first increase in 11 years, justified by telecom companies as necessary to offset inflation and operational costs that have soared over 300%. The announcement has incited public outrage, with the NLC calling for protests.
In an appearance on Arise TV on Friday, NLC President Joseph Ajaero criticized the government for siding with telecom companies while citizens struggle with rising living costs.
Ajaero, whose union represents workers earning less than $50 monthly as the minimum wage, expressed concern that the government is neglecting its regulatory duties and acting as if these private telecom companies are public enterprises.
“These corporations will profit while poverty deepens among Nigerians. This is our current dilemma. We hear government officials speak as if these are state-owned businesses,” he said.
He added, “A 50% tariff increase, aside from the additional taxes collected by the government, is primarily a method to enhance government revenue. This same approach has been evident in the power sector.”
Ajaero warned that the tariff hike would disproportionately burden low-income earners, many of whom already struggle to cover basic living expenses.
“Officials tout higher tariffs as beneficial, but this only pushes people deeper into poverty. We disagree with this stance. The government has failed to act as a proper regulator, finding a balance between corporate interests and public welfare,” he stated.
He highlighted the impact on individuals earning N70,000, noting that a N10,000 increase due to tariffs is significant and raises concerns about their ability to afford transportation, housing, and other necessities. “There’s no realistic housing available for N10,000, and transportation costs are also high,” he emphasized.
Ajaero also criticized the government’s dependence on imported telecom and power equipment, arguing that promoting local production of essential components like cables and meters could mitigate costs.
He urged the government to foster local manufacturing instead of imposing the costs of importation on consumers.
Criticizing officials who defend the tariff increase based on inflation and operational costs, Ajaero described their arguments as merely a pretext to boost government revenue while neglecting citizens’ struggles.
“The justification for this increase—citing inflation and the cost of importing equipment—falls short when we have the potential for local production. Why are we importing cables and materials that could be made domestically?” he questioned.
Ajaero lamented, “Why must ordinary Nigerians always bear the burden? We need to rethink these policies to ensure that people aren’t left struggling to survive while corporations prosper.”
On Wednesday, the NLC issued a statement warning of potential collective action, including a nationwide boycott of telecom services, to compel the government and the NCC to reverse the decision.
Today, the National Association of Telecommunications Subscribers plans to engage the telecom regulator in hopes of reversing the 50% tariff hike to a more manageable 10%.
