₦airaland Forum

The Nigeria Labour Congress has said the Federal Government is prioritising revenue generation over the welfare of citizens by supporting the recent 50 per cent increase in telecommunications tariffs.

The tariff hike, announced by the Nigerian Communications Commission on Monday, will see MTN, Airtel, Glo, and 9mobile charge more for calls and messages.

The move, the first in 11 years justified by the need for telcos to cover inflation and the high cost of operations of over 300 per cent, has sparked outrage among citizens, with the NLC particularly calling for protest.

Speaking on Arise TV on Friday, the Labour Union president Joseph Ajaero criticised the government for aligning with telecom companies while Nigerians grapple with the rising cost of living.

Ajaero, who leads a workforce earning less than $50 monthly as minimum wage, expressed concern that the government is neglecting its regulatory responsibilities and acting as though these private telecom companies are public enterprises.

“These corporate entities will be smiling to the bank while poverty among Nigerians continues. That’s the challenge we face now. We hear the minister speaking as if these are government-owned businesses.

“When you increase tariffs by 50 per cent, aside from the taxes the government may collect, it’s seen as a way to boost government revenue. This has been the same approach even in the power sector.

He warned that the tariff increase would disproportionately affect low-income earners, many of whom already struggle to cover basic living expenses.

“Government officials often say that higher tariffs are good, but this only pushes the people further down the poverty line. This is where we disagree. The government has not acted as a proper regulator to strike a balance between corporate interests and the welfare of the people.

“The government needs to strike a balance. For someone earning N70,000, paying over N10,000 on this tariff increase alone is significant. How will they afford transportation, housing, and other basic needs? It’s not realistic because, in reality, there’s no housing that costs N10,000, and transportation costs are equally high,” Ajaero said.

The NLC president also criticised the government’s reliance on imported telecom and power equipment, arguing that local production of essential components like cables and meters could reduce costs.

The NLC chief urged the government to encourage local manufacturing rather than passing the cost of importation onto consumers.

Ajaero criticised officials who defend the tariff hike on the grounds of inflation and operational costs, describing their arguments as a pretext to boost government revenue while neglecting the plight of Nigerians.

“The justification for this increase—citing inflation, cost of living, and importation of equipment—doesn’t hold when there’s potential for local production. Why are we importing cables and other materials that can be manufactured locally?

“For instance, even for metering, we’re importing cables. These are items we could produce domestically, but instead, we rely on imports and then blame rising costs on currency value and importation expenses.

“Where did we go wrong that ordinary Nigerians must always bear the brunt? We need to rethink these policies and ensure that people aren’t left struggling to survive while corporations thrive,” he lamented.

On Wednesday, the union 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.

The National Association of Telecommunications Subscribers will today engage the telecom regulator seeking a possible reversal of the 50 per cent telecom tariff hike to 10 per cent.

MasterJayJay:
Una dey craze!!! Petrol increased more than 300%, una no do anything. But you want a company not to increase it's price by 50%.

Even electricity tariff increased more than 200%.

Clowns, leave telecoms alone!

I don't even understand why government is putting a cap on what a private telecom wants to charge but they allow petrol to be selling at any price.

MasterJayJay:
Una dey craze!!! Petrol increased more than 300%, una no do anything. But you want a company not to increase it's price by 50%.

Even electricity tariff increased more than 200%.

Clowns, leave telecoms alone!

I don't even understand why government is putting a cap on what a private telecom wants to charge but they allow petrol to be selling at any price.

Jostoman:
This present Government just don't want people have money so that they can use 5k and 2deric of rice to buy people's vote

ijustdey:
https://punchng.com/tariff-hike-govt-backing-telcos-for-revenue-neglects-nigerians-nlc/?amp

michlins:
Sometimes our complaints are very useless and I guess that's why the government doesn't take us serious(aside from their total wickedness)

How do you expect a company with increased cost of operations, increased tax, increased staff salaries and ever greedy investors to stay in business by charging what they charged eleven years ago?

How do we expect them to remain in business and deliver quality services by running on a deficit.

This was exactly what happened to the power sector. They were charging below operating costs and not investing and expanding. By the time they started, the masses have already gotten used free power plus the amount of investments needed to keep the service running optimally has gone overboard

Olatunji1929:
village ediot don drop quote