50% Telco tariff hike: Labour suspends protest as govt agrees to set up review committee

The Nigerian Labour Congress has decided to suspend its planned protest opposing the 50% tariff increase in the country's telecom sector. This decision came after the government agreed to establish a broader committee, consisting of representatives from both the government and labor unions, to ensure a fair and inclusive agreement within two weeks. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, commended the government's intervention and highlighted the regulatory process that led to the tariff adjustment. Adebayo emphasized that the industry had adhered to the provisions of the Nigerian Communications Act 2003, which allow operators to request price reviews based on economic indicators, with the Nigerian Communications Commission conducting market studies to determine pricing ranges. While the industry sought a higher increase, the government opted for a 50% adjustment to balance market dynamics with affordability and sector sustainability. The establishment of a ten-man committee with a two-week timeline signals progress in addressing the tariff concerns and engaging stakeholders in constructive dialogue. Adebayo underscored the sector's focus on sustainability to ensure continued service delivery to all, including labor union members. The absence of direct communication lines with labor unions has prompted discussions on the scope of involvement in tariff matters. Adebayo reiterated the industry's commercial nature, emphasizing market forces' role in price determination and recognizing the broader economic challenges affecting Nigeria. Amid calls for increased tariff inclusivity and concerns over prior protests' impact on industry dynamics, Adebayo expressed optimism in the upcoming committee's deliberations. He emphasized the reliance on economic indicators and industry data to support the case for a tariff adjustment, pointing to prevailing economic challenges as drivers for the review. Adebayo's confidence in the committee's ability to evaluate the facts and reach a positive outcome reflects the industry's commitment to addressing pricing issues transparently and sustainably. The next two weeks will be crucial in determining the tariff adjustment's final decision and its implications for Nigeria's telecom sector's future.