The Private Telecommunications and Communications Senior Staff Association of Nigeria (PTECSSAN) has rejected the planned nationwide protest by the Nigeria Labour Congress (NLC) over the recently approved 50% increase in telecom tariff.
In a letter addressed to the NLC leadership, PTECSSAN argued that the tariff hike, though painful, is necessary to prevent the imminent collapse of the sector, which could have far-reaching consequences for the economy.
The NLC had earlier rejected the tariff increase, describing it as an additional burden on Nigerians already grappling with rising costs of living.
The labour union directed its affiliate unions to mobilize members for a protest scheduled for February 7, 2025.
However, PTECSSAN, which represents workers in the telecom sector, expressed disappointment that the NLC took the decision without consulting it, despite its direct involvement in the industry.
Why the tariff increase is inevitable
In the letter signed by its General Secretary, Comrade Okonu Abdullahi, PTECSSAN highlighted the severe challenges facing the telecom sector, including skyrocketing operational costs driven by the removal of fuel subsidies, rising prices of diesel (Automated Gas Oil), and increased electricity tariffs.
- The union revealed that the cost of diesel, which powers telecom base stations, has risen from N842.25 in May 2023 to an average of N1,441.28 as of January 2025.
- Similarly, the price of petrol used by field engineers to maintain telecom infrastructure has surged from N198 to over N1,030 within the same period.
- The union also pointed out that telecom operators rely heavily on foreign exchange to import equipment, but the depreciation of the naira has made this increasingly difficult.
- The exchange rate, which stood at N460/$1 in May 2023, has now weakened to about N1,700/$1, significantly increasing the cost of maintaining and upgrading telecom infrastructure.
- PTECSSAN warned that without the tariff increase, telecom operators might be forced to resort to service shedding, leading to widespread disruptions in communication services across the country. This, the union argued, would have a domino effect on other critical sectors, including finance and security.
Workers’ welfare at risk
The union also expressed concern over the welfare of telecom workers, noting that while public sector and other private sector workers have benefited from salary increases due to the new minimum wage law, telecom workers have been left behind. According to PTECSSAN, the inability of telecom operators to meet rising operational costs has made it difficult for them to review workers’ salaries, leaving employees vulnerable to potential job losses.
“If a situation like this persists, what employers resort to is the termination of employment of workers. We are sure that you and the Congress leadership will not be happy to see this happen, as we will not,” the letter stated.
Appeal to NLC
PTECSSAN urged the NLC to reconsider its stance on the planned protest, emphasizing that the tariff increase is a necessary measure to sustain the telecom sector.
The union appealed for understanding, noting that the hike was approved after extensive deliberations and consultations with stakeholders, including President Bola Ahmed Tinubu.
“We plead with the leadership of the Congress to rescind the decision to embark on any demonstration on this matter, as this is the only way out, as long as all other factors remain unchanged, to prevent the collapse of the sector,” the letter read.
Backstory
The NCC had on January 20 announced that it had approved a 50% tariff adjustment for telecom operators, citing rising operational costs and the need to sustain the industry.
- The Commission in a statement signed by the Director of Public Affairs, Reuben Muoka, said the decision underlines the Commission’s regulatory role under Section 108 of the Nigerian Communications Act, 2003.
- However, the National Association of Telecommunications Subscribers (NATCOMS) has threatened to challenge the approved tariff hike in court.
- This decision, according to NATCOMS, was made without adequate consultation with key stakeholders, including subscribers.
