Nigeria telecoms
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By Nana Theresa Timothy

Telecom Workers Union Warns Against Strike as Industry Costs Soar

The Private Telecommunications and Communications Senior Staff Association of Nigeria (PTECSSAN) has cautioned the Nigeria Labour Congress (NLC) against proceeding with its planned boycott of telecommunications services in protest of the 50% increase in mobile tariffs.

RELATED: NCC approves 50% tariff hike for telecom services: Implications for Nigerians and industry

In a letter addressed to the NLC, PTECSSAN General Secretary, Okonu Abdullahi, stressed that the strike is unnecessary. He said it will not resolve the underlying economic challenges affecting the telecommunications sector.

“It is our firm belief that the Congress leadership has acted in error in taking these decisions without prior consultation with our Union that operates in the sector. Perhaps getting in touch with us to provide information on the happenings in the sector would have assisted the leadership in taking a better decision than it had taken,” Abdullahi stated.

The NLC had earlier rejected the government-approved 50% tariff hike. Describing it as an unjust burden, NLC said Nigerians were already struggling with inflation and rising costs of living. The union announced plans for a nationwide protest on February 4, 2025, to push for a reversal of the hike.

However, the telecom industry union insists that the price adjustment is inevitable due to the surging cost of operations. It warned that without an increase, network providers could be forced to cut services, leading to disruptions in Nigeria’s digital economy.

Why the Telecom Tariff Increase Is Unavoidable

In its letter to the NLC, PTECSSAN outlined the severe economic pressures facing the telecommunications sector. Abdullahi emphasized that rising operational costs have made it difficult for service providers to sustain quality service.

Key Factors Driving the Tariff Hike:

Fuel and Diesel Price Surge:

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  • Diesel (used to power telecom base stations) rose from N842.25 per liter in May 2023 to N1,441.28 in January 2025.
  • Petrol (used by field engineers) jumped from N198 per liter to over N1,030 in the same period.

Electricity Tariff Hike:

  • Increased energy costs have put additional financial strain on telecom operators.

Naira Depreciation & Forex Challenges:

  • Telecom operators depend on foreign exchange to import equipment and maintain infrastructure.
  • The exchange rate weakened from N460/$1 in May 2023 to around N1,700/$1 in January 2025, significantly raising importation costs.

PTECSSAN warned that without the tariff adjustment, telecom operators might be forced into “service shedding.”  This could lead to widespread network disruptions affecting finance, security, and digital services across the country.

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“If operators cannot cover rising costs, they will be unable to maintain infrastructure, leading to poor service quality, job losses, and economic disruptions,” the union cautioned.

NANS Distances Itself from NLC’s Protest Plans

In a related development, the National Association of Nigerian Students (NANS) has disassociated itself from the NLC’s planned protest against the tariff increase.

The student body acknowledged the economic realities facing the telecom sector. But it advised on emphasized the need for constructive dialogue rather than protests. NANS said the protest could potentially disrupt services millions of Nigerians depend on daily.

NLC’s Stand: Public Outcry Over Telecom Tariff Hike

Despite PTECSSAN’s arguments, the NLC remains firm in its opposition, with its President, Joe Ajaero, describing the tariff hike as an additional financial burden on Nigerians.

“This increase is unjust and comes at a time when citizens are struggling with inflation, food insecurity, and high living costs. We reject it outright,” Ajaero said.

With the February 4 protest looming, tensions are rising between labor unions, telecom workers, and industry stakeholders over the future of Nigeria’s telecom pricing structure.

What’s Next?

As the debate over telecom tariff increases continues, stakeholders are calling for a balanced approach that ensures affordable pricing for consumers while maintaining industry sustainability.

The coming weeks will reveal whether dialogue prevails or if the NLC’s planned strike goes ahead, potentially impacting millions of Nigerians who rely on telecom services for communication, business, and financial transactions.

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