The Nigeria Labour Congress shelved its proposed nationwide protest to reject the hike in telecom tariff by 50% after a Monday meeting. This was the outcome of deliberations between the government functionaries and the unions at the Office of the Secretary to the Government of the Federation in Abuja. The protest had been slated for Tuesday, but the initial provocation had come with the approval of the tariff hike by the Federal Government through the NCC.
The NCC said the tariff hike was due to rising operational costs, including inflation, foreign exchange fluctuations, and increased energy costs. It believed the hike became necessary to safeguard the financial viability of the sector, in carrying out its mandate under the Nigerian Communications Act, 2003.
The NLC, however, rejected it and called on the government to reduce it further to just 5%. The union argued that the 50% increase was unjustifiable and would add to the burden of the Nigerian consumers who were already finding it hard to cope with the economic realities. NLC President Joe Ajaero slammed the decision as insensitive and a direct attack on workers in Nigeria. After a National Administrative Council meeting, Ajaero restated the position of the NLC and threatened a nationwide protest, asking Nigerians to get ready for a boycott of telecommunication services.
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But the telecom operators would not budge, insisting that the tariff adjustment was the only way to sustain the quality of service and expand their networks in the face of increasing costs of operations. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, ALTON, Gbenga Adebayo, said the increase was a matter of life and death for the telecom industry. He added that even a reduction in the increase would still not be good enough to make the operations of telecoms viable for the long term in Nigeria.
The NLC had received solidarity support for the protest from electricity workers, aviation workers, and some civil society groups. However, it shelved the protest following its meeting with the government delegation for further deliberations. Ajaero said the government had agreed to constitute a larger committee to review the entire telecom tariff structure, made up of five representatives each from the NLC and the government, and that it would submit its findings within two weeks.
In a post-meeting statement, Ajaero reiterated that the NLC is the largest organization in Africa and that its input must be taken into consideration by any stakeholder consultations. The committee, he said, would work out a fair and all-encompassing agreement over the entire tariff structure. Whichever the findings of this committee, he noted, would be the next action, which may include protests, boycotts, or even a withdrawal of services.
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“The symbolic action of sending protest letters is suspended until the committee reports back,” Ajaero said. “We will decide on our next line of action based on their report.” The NLC, though, has shelved the proposed protest despite pointing out that the union was still concerned over other key economic issues, such as the high cost of electricity and heavy taxes that still weigh heavily on workers.
Minister of Information and National Orientation Mohammed Idris said the increase was informed by an exhaustive study undertaken by the NCC, adding that the NLC had accepted to look at the study and join in the review. He explained that within the next two weeks, a five-man committee of representatives from the government and the NLC would analyze the study and come up with a final solution to be proposed to both parties. He explained that such a process would avert the need for the protest that had been planned.
“We have agreed to establish a committee that will review the study done by the NCC and come up with a final resolution within two weeks,” said Idris. “This will ensure that both the government and the NLC are part of the decision-making process. Because of that, there will be no protest tomorrow.”
Aside from the NLC, the National Civil Society Council of Nigeria, NCSCN, which had also declared support for the protest earlier, announced a similar suspension of its planned mass demonstration on Monday. The NCSCN had planned to lead hundreds of representatives of its over 600 affiliate organisations in occupation of the headquarters of the NCC and that of the National Assembly to register their protests over the tariff increase.
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However, after extensive deliberations and a forensic analysis of the financial data of the telecom sector, the NCSCN did a volte-face. The council constituted an 11-man delegation to a four-hour meeting with officials of the NCC, where a detailed presentation was made on the economic realities facing the telecom providers. The deliberations made the council to have a rethink on its stance on the matter.
According to the Executive Director of NCSCN, Blessing Akinlosotu, the council went into the meeting believing there would be a confrontation, but it was amazed with data that made it change its mind. The NCSCN subsequently set up a five-man technical committee following the meeting to carry out a forensic analysis of the financial statement, operational cost and profit margin of the telecom service providers.
Akinlosotu explained, “We set up a five-man committee to closely examine the financial records of major telecom providers. Our findings were surprising and led us to reconsider our previous position on the tariff hike.”
The committee, however, established that the telecom operators had not increased tariffs since 2013, despite prevailing inflation and other economic challenges. The finding further nailed the necessity of the increase against rising operational costs. Based on this analysis, the NCSCN decided to suspend its planned protest and await further developments from the government and the NLC.
The decision of the NLC and NCSCN to suspend protests suggests, above all, that dialogue and negotiation are key in the resolution of the telecom tariff issue. With the constitution of the review committee, all parties await its findings expected to shape future actions and decisions regarding the telecom tariff structure in Nigeria.
The Nigeria Labour Congress shelved its proposed nationwide protest to reject the hike in telecom tariff by 50% after a Monday meeting. This was the outcome of deliberations between the government functionaries and the unions at the Office of the Secretary to the Government of the Federation in Abuja. The protest had been slated for Tuesday, but the initial provocation had come with the approval of the tariff hike by the Federal Government through the NCC.
The NCC said the tariff hike was due to rising operational costs, including inflation, foreign exchange fluctuations, and increased energy costs. It believed the hike became necessary to safeguard the financial viability of the sector, in carrying out its mandate under the Nigerian Communications Act, 2003.
The NLC, however, rejected it and called on the government to reduce it further to just 5%. The union argued that the 50% increase was unjustifiable and would add to the burden of the Nigerian consumers who were already finding it hard to cope with the economic realities. NLC President Joe Ajaero slammed the decision as insensitive and a direct attack on workers in Nigeria. After a National Administrative Council meeting, Ajaero restated the position of the NLC and threatened a nationwide protest, asking Nigerians to get ready for a boycott of telecommunication services.
But the telecom operators would not budge, insisting that the tariff adjustment was the only way to sustain the quality of service and expand their networks in the face of increasing costs of operations. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, ALTON, Gbenga Adebayo, said the increase was a matter of life and death for the telecom industry. He added that even a reduction in the increase would still not be good enough to make the operations of telecoms viable for the long term in Nigeria.
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The NLC had received solidarity support for the protest from electricity workers, aviation workers, and some civil society groups. However, it shelved the protest following its meeting with the government delegation for further deliberations. Ajaero said the government had agreed to constitute a larger committee to review the entire telecom tariff structure, made up of five representatives each from the NLC and the government, and that it would submit its findings within two weeks.
In a post-meeting statement, Ajaero reiterated that the NLC is the largest organization in Africa and that its input must be taken into consideration by any stakeholder consultations. The committee, he said, would work out a fair and all-encompassing agreement over the entire tariff structure. Whichever the findings of this committee, he noted, would be the next action, which may include protests, boycotts, or even a withdrawal of services.
“The symbolic action of sending protest letters is suspended until the committee reports back,” Ajaero said. “We will decide on our next line of action based on their report.” The NLC, though, has shelved the proposed protest despite pointing out that the union was still concerned over other key economic issues, such as the high cost of electricity and heavy taxes that still weigh heavily on workers.
Minister of Information and National Orientation Mohammed Idris said the increase was informed by an exhaustive study undertaken by the NCC, adding that the NLC had accepted to look at the study and join in the review. He explained that within the next two weeks, a five-man committee of representatives from the government and the NLC would analyze the study and come up with a final solution to be proposed to both parties. He explained that such a process would avert the need for the protest that had been planned.
“We have agreed to establish a committee that will review the study done by the NCC and come up with a final resolution within two weeks,” said Idris. “This will ensure that both the government and the NLC are part of the decision-making process. Because of that, there will be no protest tomorrow.”
Aside from the NLC, the National Civil Society Council of Nigeria, NCSCN, which had also declared support for the protest earlier, announced a similar suspension of its planned mass demonstration on Monday. The NCSCN had planned to lead hundreds of representatives of its over 600 affiliate organisations in occupation of the headquarters of the NCC and that of the National Assembly to register their protests over the tariff increase.
However, after extensive deliberations and a forensic analysis of the financial data of the telecom sector, the NCSCN did a volte-face. The council constituted an 11-man delegation to a four-hour meeting with officials of the NCC, where a detailed presentation was made on the economic realities facing the telecom providers. The deliberations made the council to have a rethink on its stance on the matter.
According to the Executive Director of NCSCN, Blessing Akinlosotu, the council went into the meeting believing there would be a confrontation, but it was amazed with data that made it change its mind. The NCSCN subsequently set up a five-man technical committee following the meeting to carry out a forensic analysis of the financial statement, operational cost and profit margin of the telecom service providers.
Akinlosotu explained, “We set up a five-man committee to closely examine the financial records of major telecom providers. Our findings were surprising and led us to reconsider our previous position on the tariff hike.”
The committee, however, established that the telecom operators had not increased tariffs since 2013, despite prevailing inflation and other economic challenges. The finding further nailed the necessity of the increase against rising operational costs. Based on this analysis, the NCSCN decided to suspend its planned protest and await further developments from the government and the NLC.
The decision of the NLC and NCSCN to suspend protests suggests, above all, that dialogue and negotiation are key in the resolution of the telecom tariff issue. With the constitution of the review committee, all parties await its findings expected to shape future actions and decisions regarding the telecom tariff structure in Nigeria.
Written by GistNexus Correspondent, Mr. Edit Edeh and Editted By Mr. Chibueze Onwuka