The National Civil Society Council of Nigeria has officially suspended its planned protest against the recent 50% increase in telecom tariffs following a high-level engagement with the Nigerian Communications Commission.
The decision was announced during a press briefing in Abuja on Monday, marking a significant shift in the Council’s initial opposition to the tariff adjustment.
The reversal came after extensive deliberations and an in-depth review of economic factors affecting the telecommunications industry.
Last week, the NCSCN had convened an emergency meeting in response to reports that the Federal Government had approved a 50% tariff hike for telecom operators.
Strongly condemning the move, the Council and its 620 affiliate organizations planned to stage a mass protest, vowing to occupy the headquarters of the NCC and the National Assembly until the decision was overturned.
In line with its protocol, the NCSCN formally notified the NCC of its intention to protest. However, in what the Council described as an “unprecedented display of responsiveness,” the regulatory body swiftly reached out within 24 hours, initiating discussions to address concerns.
In response to the NCC’s invitation, the NCSCN assembled an 11-member delegation for a four-hour meeting with the Commission’s officials.
According to NCSCN Executive Director Blessing Akinlosotu, the delegation arrived at the meeting prepared for a tough negotiation, expecting to challenge the tariff hike decision.
However, after reviewing the NCC’s detailed presentations on economic assessments and operational realities, the Council decided to conduct a more thorough evaluation.
To ensure objectivity, a five-man technical committee was formed to analyze the financial statements, annual profit margins, and operational costs of major telecom service providers.
Following this forensic review, Akinlosotu explained, “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 despite rising operational costs, telecom operators had not increased tariffs since 2013. Several factors were identified as contributing to the increased financial burden on service providers, including:
Soaring energy costs: A sharp rise in electricity and diesel prices has significantly impacted network operations.
Security challenges: Vandalism of telecom infrastructure has added to the financial strain.
Currency fluctuations: The naira’s devaluation and unstable foreign exchange rates have made it more expensive to import telecom equipment.
Although the 50% tariff hike represents an upper limit, the NCSCN noted that competition among service providers could prevent them from imposing the maximum increase.
Additionally, the NCC has mandated telecom operators to improve service quality, requiring upgrades to infrastructure to enhance network efficiency.
The Council also highlighted 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.
Recognizing the economic difficulties faced by both consumers and service providers, the NCSCN ultimately reconsidered its stance.
Akinlosotu acknowledged the hardship Nigerians are facing but also pointed out the struggle of telecom companies to sustain operations:
“Let us accept the painful and bitter realities being faced in the Operational Cost by Service Providers and allow for this understandable Tariff Adjustment,” he noted.
However, the Council urged the NCC to closely monitor telecom operators to ensure they comply with conditions tied to the tariff hike, particularly those aimed at improving service quality.
It also called on the government to intervene in the energy sector, citing high electricity and fuel costs as major drivers of telecom expenses.
In addition, the Council appealed to the Federal Government to implement policies that would stabilize the naira and reduce business costs for operators.
After reviewing all available data, the NCSCN announced the cancellation of its planned protest, instructing its members to suspend any planned demonstrations.
The Council also urged the Nigerian Labour Congress to reconsider its opposition to the tariff hike, warning that continued resistance could lead to a collapse in the telecom sector.
“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.”
Akinlosotu further encouraged Nigerians to be patient, acknowledging that the current administration inherited a struggling economy.
He expressed hope that with the right policies, economic conditions would gradually improve.
“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.”
With this development, the NCSCN has positioned itself as a mediator between consumer interests and industry realities, urging all stakeholders to find a middle ground in addressing the country’s economic challenges.
