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Telecoms Tariff Hike: Govt Supporting Telcos For Revenue – NLC

Posted on January 25, 2025January 25, 2025 By Rextun boss No Comments on Telecoms Tariff Hike: Govt Supporting Telcos For Revenue – NLC

The NLC President, Joseph Ajaero, has accused the Federal Government of prioritising revenue generation over the welfare of citizens by supporting the recent 50 per cent increase in telecommunications tariffs.

Speaking on Arise TV on Friday, Ajaero criticised the government for aligning with telecom companies while Nigerians grappled with the rising cost of living.

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

He said, “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 struggled to cover basic living expenses.

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“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.

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

Ajaero criticized 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.

Meanwhile in a statement on Wednesday, Ajaero has urged Nigerians to prepare for a nationwide boycott of telecoms services in protest against the planned hike.

The labour union expressed concern over the timing of the hike, saying it coincided with rising inflation and declining purchasing power.

The NLC president stated that telecom services had become a basic necessity, with the average Nigerian worker spending approximately 10 per cent of their income on telecom charges.

“Together, we will do our best to resist this injustice and demand that the government prioritise the interests of its citizens over corporate interests,” he said.

Employment, Labour & Productivity, Telecoms & Information Technology Tags:Joe Ajaero, NLC, Telcoms Tariff Hike

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