50% telecom tariff hike: NATCOMS supports decision as NLC backs down from protest

In a surprising turn of events, the Nigeria Labour Congress (NLC) has backed down from its planned nationwide protest against the recently approved 50 percent hike in telecommunications tariffs. The decision came after intense negotiations with the Federal Government, culminating in the signing of a Memorandum of Understanding (MoU) late Monday night.
The MoU, signed by the Secretary to the Government of the Federation (SGF), Senator George Akume, NLC President Joe Ajaero, Minister of Labour and Employment Muhammadu Dingyadi, and NLC National Secretary Emmanuel Ugboaja, outlines the creation of a 10-man technical committee to resolve issues surrounding the tariff increase. The committee, made up of five representatives from both the NLC and the Federal Government, is expected to submit its findings within two weeks, by February 17, 2025.
Following the agreement, the NLC agreed to suspend its one-day nationwide protest that was originally scheduled for Tuesday, February 4, 2025, while calling for calm among Nigerians as the committee works to address the contentious issue.
In a statement, the NLC reiterated its opposition to the tariff hike, stressing its negative impact on Nigerian workers and the economy. However, they accepted the formation of the joint committee as a step towards resolving the matter without resorting to mass protests.
The statement read: “The Nigeria Labour Congress (NLC) expressed strong opposition to the 50% hike in telecommunications tariffs in the country, citing its potential negative impact on Nigerian workers and the economy with a threat to proceed on a one-day nationwide mass protest. The parties have agreed to sit together in a technical group to resolve most of the thorny areas raised during the discussion; consequently, a 10-man joint committee was set up, and the committee shall conclude and submit its deliberations within two weeks from this 3rd day of February, 2025.”
The announcement came after the National Civil Society Council of Nigeria (NCSCN) also suspended its planned protest against the tariff hike.
NATCOMS backs tariff hike decision
Meanwhile, the National Association of Telecoms Subscribers (NATCOMS) has supported the suspension of the protest, with its National President, Adeolu Ogunbanjo, recommending the halt of the nationwide demonstration. Ogunbanjo expressed concern that such a protest could undermine investor confidence and negatively impact investments in the telecom sector.
“I believe the protest would harm investor confidence and ultimately hurt the telecom industry. The sector has been one of the few shining examples in the Nigerian economy,” Ogunbanjo told DAILY POST on Monday. He further recommended a more modest 10 percent tariff increase, suggesting that the government consider alternative ways to boost capital for the sector without overwhelming consumers.
Ogunbanjo’s comments echoed the position of mobile network operators like MTN, Airtel, and GLO, who have signaled their intention to implement the new 50 percent tariff increase despite the ongoing controversy.
Rising costs and global inflation
The hike, approved by the Nigerian Communications Commission (NCC) in January 2025, will see the cost of recharging calls, data services, and other telecom-related expenses increase by 50 percent. Minister of Communications and Digital Economy, Bosun Tijani, has justified the decision by citing rising global inflation, which has impacted operational costs for telecom providers.
The last telecom tariff increase in Nigeria was in 2013, making this the first major adjustment in over a decade.
With the protest now suspended, all eyes will be on the upcoming deliberations of the technical committee, which will work to iron out the remaining issues surrounding the tariff hike.