Telecommunications leaders have issued a stark warning to the Nigeria Labour Congress (NLC): abandon the planned nationwide protest set for February 4, 2025, or risk devastating the nation’s already fragile telecom sector.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators in Nigeria (ALTON), emphasized that the proposed protest could exacerbate existing challenges in an industry already grappling with significant financial strains. He stated, “I hope Labour does not become the undertaker of the industry. If that happens, the consequences are clear; we will start heading downward. And once we do, recovery may become impossible.”
The NLC has organized the protest in response to the Nigerian Communications Commission’s (NCC) recent approval of a 50% increase in telecommunications tariffs. The union deems this hike as “insensitive, unjustifiable, and a direct assault on Nigerian workers and the general populace,” especially given the current economic hardships.
However, telecom operators argue that the tariff adjustment is essential for the sector’s survival. Rising operational costs, driven by factors such as the removal of fuel subsidies and a fluctuating exchange rate, have significantly increased expenses. For instance, the cost of Automated Gas Oil (AGO), used to power base stations, has surged from N842.25 to an average of N1,441.28 since May 2023.
Adebayo further illustrated the industry’s plight by comparing it to a critically ill patient needing oxygen. He explained that while the sector requires a 100% increase to remain viable, operators accepted the government’s 50% approval as a lifeline. Reducing this further, he warned, would be catastrophic.
The Private Telecommunications and Communications Senior Staff Association of Nigeria (PTECSSAN) has also distanced itself from the NLC’s planned protest, emphasizing that the tariff hike is necessary to prevent the industry’s collapse. In a letter to the NLC, PTECSSAN’s General Secretary, Okonu Abdullahi, stated that the union had acted “in error” without prior consultation.
As the February 4 protest date approaches, stakeholders are urging the NLC to reconsider its stance. The House of Representatives’ Committee on Communications is engaging with the NLC leadership to avert the protest, highlighting that such action could lead to further hardship for Nigerians.
