News Highlights:
- PTECSSAN Urges NLC to Reconsider Protest Against Telecom Tariff Increase
- Insists Rising Operational Costs Threaten Telecom Industry Stability
The Private Telecommunications & Communications Senior Staff Association of Nigeria (PTECSSAN) has urged the Nigeria Labour Congress (NLC) to reconsider its stance on the proposed 50% increase in telecommunications service tariffs, emphasizing that protests and industrial actions will not prevent the imminent collapse of the sector.
In a letter addressed to the President of the Nigeria Labour Congress, PTECSSAN through its General Secretary, Comrade Okonu Abdullahi A., expressed concern over the NLC’s directive to mobilize affiliate unions for a nationwide protest on February 7, 2025, following the Federal Government’s approval of the tariff hike.
In the letter sighted by Digital TimesNG, the union noted that the NLC’s decision was taken without prior consultation with PTECSSAN, despite the union’s deep understanding of the challenges facing the telecom sector.
PTECSSAN highlighted several critical factors contributing to the necessity of the tariff increase, including soaring operational costs due to fuel subsidy removal, high electricity tariffs, and the depreciation of the Naira.
“Since the removal of fuel subsidy in May 2023, the cost of Automated Gas Oil (diesel) used to power telecom base stations has surged from N842.25 to an average of N1,441.28 per litre,” said Comrade Okonu Abdullahi A., General Secretary of PTECSSAN. “Similarly, the cost of Premium Motor Spirit (PMS) for fueling field engineers’ vehicles has skyrocketed from N198 to over N1,030 per litre, depending on the location.”
He further noted that electricity costs have increased significantly due to the introduction of consumption bands, making it nearly impossible for telecom operators to cut costs while maintaining efficient service delivery.
The union also cited the impact of the Naira’s depreciation on the industry, emphasizing the difficulty in procuring essential telecom equipment.
“The telecom sector relies heavily on foreign exchange to import critical infrastructure. The Naira, which exchanged at N460 per dollar in May 2023, now trades at around N1,700 per dollar. This has severely hampered the ability of telecom operators to maintain and upgrade network infrastructure,” Abdullahi added.
PTECSSAN referenced warnings from the Association of Licensed Telecommunication Operators of Nigeria (ALTON) about the dire financial strain on telecom companies. Some industry executives have likened the sector’s current state to a patient on life support, stressing that without intervention, the industry faces imminent collapse.
“Our engagements with telecom workers confirm that the industry is under immense financial stress. Many operators have considered service shedding, which would result in nationwide disruptions to communication services, impacting finance, security, and other critical sectors,” the union stated.
The union warned that failure to implement the tariff increase could lead to job losses, as employers struggle to sustain operations. Unlike workers in other sectors who have benefited from wage increases due to inflation, telecom employees have seen no salary adjustments due to financial constraints in the industry.
“If this situation persists, job losses are inevitable. We urge the NLC to prioritize sector stability over short-term public sentiment, as an industry collapse would have devastating ripple effects on the entire economy,” the statement read.
In light of these concerns, PTECSSAN appealed to the NLC leadership to rescind its decision to mobilize for protests, urging dialogue as a more productive approach.
“We remain committed to working with the NLC and other stakeholders to find sustainable solutions that will protect both telecom workers and consumers. However, resisting necessary reforms will only exacerbate the sector’s crisis,” Abdullahi concluded.
PTECSSAN reaffirmed its commitment to supporting policies that ensure the telecom industry’s stability while advocating for fair working conditions and improved service delivery for Nigerian consumers.