Regulation

Nigeria’s NLC opposes telecoms tariff hike as GSMA supports it

Nigeria’s NLC opposes telecoms tariff hike as GSMA supports it

The Nigeria Labour Congress (NLC) – Nigeria's largest labour union – has reportedly called for a nationwide protest next week to oppose a government-approved plan by telcos to raise tariffs by 50%, as the GSMA has waded in to support the increase.

Last week, the Nigerian Communications Commission (NCC) approved tariff increases for operators with a cap at 50%. The NCC said the increase would allow operators – who have been struggling amid high inflation and currency fluctuations – to invest in infrastructure and fund innovation projects, which in turn would benefit consumers through improved services.

On Wednesday, according to Reuters, the NLC slammed the tariff hike, calling it "insensitive, unjustifiable, and a direct assault" on consumers who are already dealing with higher prices for food, petrol and electricity.

NLC President Joe Ajaero announced plans for a nationwide rally on February 4, saying in a statement that the protest would “serve as a warning on the dangers of imposing such an unfair increase on a struggling population”.

The NLC is demanding that the tariff hike be suspended and that the government meet with the NCC and union leaders to discuss the issue.

On Thursday, according to Nigerian newspaper Punch, NLC spokesman Benson Upah told Channels Television’s Sunrise Daily programme that while the NLC opposes any raise in telecoms prices, it might compromise on a 5% increase.

The National Association of Telecommunications Subscribers (NATCOMS), which represents consumers, has also advocated for a tariff increase of 5% to 10%.

GSMA backs NCC, recommends more telecoms reforms

Meanwhile, the GSMA issued a statement on Wednesday supporting the tariff hike, backing the NCC’s argument that the increase would benefit consumers by boosting infrastructure investment.

The GSMA said the tariffs would unlock over US$150 million in additional investments that would increase 4G coverage to 94% of the population, enabling mobile internet access for an additional 9 million people, with 2 million of those in underserved areas.

That said, Angela Wamola, the GSMA’s head Sub-Saharan Africa, also urged the Nigerian government to streamline right of way (RoW) permits, implement critical national infrastructure legislation and lower taxes on the mobile telecoms sector to boost investment further and accelerate digital adoption across all sectors.

“It is estimated that increased digitalisation in agriculture, manufacturing, transport, trade and government will increase GDP by around two percentage points by 2028,” she said in a statement. “This would also create nearly 2 million jobs and raise an additional NGN 1.6 trillion [a little over US$1 billion] in tax revenue.” 



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