NLC: “Telecom Service Cannot Be A Palliative For Other Sectors” Experts Give Telling Reasons

Experts have provided compelling reasons why the services provided by telecommunications companies cannot be used as a palliative for the problems in other sectors.

Amid rising costs of living, which have led players across different sectors—including energy and petroleum—to hike prices to match the prevailing economic situation, the telecom industry, in a unified effort, pushed for a 100% tariff review. However, the industry regulator, the Nigerian Communications Commission (NCC), slashed this to 50%.

But the Nigeria Labour Congress (NLC) is kicking against the agreement, threatening a strike action aimed at paralyzing telecom operations to force a lower price adjustment.

The NLC’s hard stance is based on claims that the increase would be one too many for Nigerians to bear.

However, experts have warned that the nation is running a big risk by making telecom services a palliative for the problems in other areas of life.

“The fact remains that we have emphasized that this review is necessary for the survival of the sector. I think that point is taken.

“The other side of it is that the sector cannot be a subsidy for the problems of other sectors. You can’t say because the cost of garri, pepper, and cocoyam has gone up, we have to subsidize people’s living by providing services at below cost. It is only a matter of time before we start seeing the negative effects,” Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), pointed out during an interaction over the weekend.

“We are getting to a point where we simply won’t be able to provide these services. And if we can’t provide them, what it will take to get back to where we are now will be so much that we could be looking at three times the years to recover,” Tobechukwu Okigbo, the Chief Corporate Services Officer at MTN Nigeria, painted a grave picture of the situation. He further explained that the approved 50% tariff adjustment would only help telecom companies “keep the lights on,” not make a profit.

“It is simply about sustainability. It is simply about keeping the lights on—just keeping it on—so that what we have now, we can continue to have,” Okigbo emphasized.

The telecom industry came together to push for a tariff review after years of mounting losses due to ballooning costs resulted in unprecedented financial setbacks, including wiping out shareholders’ funds.

“The 50% tariff review only pushed forward that inflection point—that tipping point where, once reached, going back becomes a problem,” Okigbo insisted, warning that the country faces a very dire situation if the increase is further reduced.

The ALTON Chairman, who described telecom services as Nigeria’s “economic superhighway” due to their role as a catalyst for many income earners for the nation, stressed that “it is important that we charge rates that are sustainable. We cannot be a subsidy for the problems of other sectors.”

Reiterating his stance, he added, “The government has to provide commensurate palliatives to help people get through this period (rising cost). Our services cannot be used as palliatives.”