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The National Civil Society Council of Nigeria has suspended its planned protest against the recent 50 per cent increase in telecom tariffs following a high-level engagement with the Nigerian Communications Commission.
The decision, announced during a press briefing in Abuja on Monday, marked a shift in the Council’s stance after extensive deliberations and a forensic review of the economic realities affecting telecom service providers.
Last week, the NCSCN convened an emergency meeting after news emerged that the Federal Government had approved a 50 per cent tariff hike for telecom operators.
The Council, alongside its 620 affiliate organisations, initially condemned the decision and planned a mass protest to occupy the headquarters of the NCC and the National Assembly until the government reversed the tariff adjustment.
Following its established protocols, the NCSCN formally notified the NCC of its intentions.
However, in what the Council described as an unprecedented display of responsiveness, the NCC reached out within 24 hours to initiate discussions.
In response, the NCSCN assembled an 11-man delegation for a four-hour meeting with NCC officials.
According to NCSCN Executive Director, Blessing Akinlosotu, the Council’s delegation initially approached the meeting prepared for a showdown, expecting to challenge the NCC on the tariff decision.
However, detailed presentations, economic assessments and operational data provided during the meeting led to a re-evaluation of the situation.
To ensure an objective assessment, the Council formed a five-man technical committee to conduct a forensic analysis of telecom service providers’ operational costs, financial statements and annual profit margins.
Akinlosotu said, “After the tensed and robust engagement with the Management of NCC, we further set up a 5-man Technical Committee to carefully study documents presented to us, and asked the Committee to do a clinical and forensic examination of available records of operational costs and annual profits margins of some major Telecom Service Providers in Nigeria, with critical assessments of Financial Statements.
“Our findings were very interesting and call for a serious review of the position and planned line of action.”
The committee’s findings revealed that telecom operators had not increased tariffs since 2013 despite inflation and harsh economic conditions.
The cost of electricity and diesel has risen sharply, significantly impacting network operations.
Security challenges, particularly the vandalism of telecom infrastructure, have placed additional financial strain on service providers.
The devaluation of the naira and fluctuations in foreign exchange rates have also contributed to rising costs, making it more expensive to import telecom equipment.
While the approved 50 per cent tariff hike represents an upper limit, the Council noted that competition among service providers could prevent operators from implementing the maximum increase.
The NCC has mandated service quality improvements, requiring telecom providers to upgrade infrastructure to enhance network efficiency and ensure better service delivery.
The Council further established that, even with the adjustment, Nigeria’s telecom tariffs remain among the lowest globally, with the increase amounting to less than 10 kobo per second.
Following a review of these findings, the NCSCN acknowledged the economic pressures affecting both consumers and service providers.
Akinlosotu stated that while Nigerians are battling severe economic hardship, telecom companies are also struggling to maintain operations due to increasing costs.
He described the NCC’s position as a delicate balancing act between the interests of consumers and service providers, both of whom are dealing with the impact of inflation and an unstable business environment.
The NCSCN called on the NCC to ensure that telecom operators comply fully with the conditions tied to the tariff hike, particularly those requiring service quality improvements.
It also urged the regulator to strengthen monitoring mechanisms to prevent operators from unfairly imposing the maximum 50 per cent increase on consumers.
Telecom providers were advised to prioritise customer interests by keeping tariffs as low as possible despite the approved adjustment.
The Council also appealed to the Federal Government to declare a state of emergency in the energy sector, citing the high cost of electricity and fuel as major factors driving up telecom costs.
It further called on the government to implement policies aimed at strengthening the naira and stabilising foreign exchange rates to reduce the cost of doing business.
After reviewing the evidence, the NCSCN announced the cancellation of its planned protest, urging its members to shield their “swords for now, as we call off the planned Protest earlier scheduled to commence today Monday, January 3, 2025.
“Let us accept the painful and bitter realities being faced in the Operational Cost by Service Providers and allow for this understandable Tariff Adjustment.”
Akinlosotu called on the Nigerian Labour Congress to reconsider its position and recognise the operational challenges faced by telecom providers, warning that continued resistance to the tariff adjustment could push the sector towards collapse.
He further urged Nigerians to remain patient, acknowledging that the current administration inherited a struggling economy but expressing hope that conditions would gradually improve with the right policies.
“NCSCN equally appeals to our Big Brother, the Nigerian Labour Congress to review its position on this matter and find reasons to allow for this unavoidable Tariff Adjustment, to prevent systemic collapse of Telecom Services in Nigeria, seeing that most businesses are already folding up and leaving the Country owing to high Production Costs.
“We appeal to Nigerians to keep faith with the NCC Leadership as we in the NCSCN have seen relatively a very reasonable level of Patriotism and commitment to the well-being of the People, which is the reason the Tariff has been kept at a relatively low level, till date,” Akinlosotu said.
