The Nigeria Labour Congress (NLC) has suspended its planned nationwide protest against the recent 50 per cent hike in telecom tariffs approved by the Federal Government.
According to The PUNCH, the labour union aborted the planned rally scheduled for Tuesday (today) following a meeting with government representatives at the Office of the Secretary to the Government of the Federation in Abuja, on Monday.
The telecom regulator, the Nigerian Communications Commission (NCC), had defended the 50 per cent tariff increase, citing rising operational costs driven by inflation, foreign exchange fluctuations, and higher energy expenses.
In a statement, the regulator said the adjustment was in line with its mandate under the Nigerian Communications Act, 2003 to ensure the financial sustainability of the telecom sector.
However, the NLC rejected the tariff hike and demanded a reduction to five per cent, threatening a nationwide protest if its demands were not met.
It condemned the hike as insensitive and unjustifiable, arguing that it would impose an extra burden on Nigerian consumers.
The union’s president, Joe Ajaero, reiterated its demand for a significant reduction after the National Administrative Council meeting of the NLC.
Nigeria’s telecom industry may experience a significant $870 million drop in capital expenditures by 2026, as a result of 11 years of delay in tariff increases, according to an internal document from MTN Nigeria obtained by The PUNCH.
The decline in investments, which would have been used to expand and upgrade telecom infrastructure such as network coverage, technology upgrades, and the deployment of new services, is largely attributed to tariff hike delays.
The document revealed that in 2022, Nigerian telcos invested $1.41 billion in capital expenditure, but the figure dropped to $1.16 billion in 2023.
This is expected to fall even further to $0.47 billion in 2025. By 2026, the investment is forecasted to remain low at $0.50 billion, marking a $0.87 billion shortfall compared to the baseline figures from 2022, the document showed.
The 18 per cent decline in planned capital expenditures is primarily driven by the inability of telecom companies to raise tariffs, which are crucial for offsetting operational costs and financing network expansion.
In a key development, the NCC has approved a 50 per cent tariff hike, the first such increase in over a decade. The new tariffs are expected to take effect from February 2025, providing a much-needed boost to the telecom industry.
Major telecom operators MTN Nigeria Communications Plc and Airtel Africa Plc had announced reducing their investments in network infrastructure as they focus on minimising foreign exchange exposure and managing rising operational costs.
(The PUNCH)
