PTECSSAN calls NLC to Reevaluate Tariff Hike opposition

The Private Telecommunications and Communications Senior Staff Association of Nigeria (PTECSSAN) has called on the Nigeria Labour Congress (NLC) to reevaluate its opposition to the proposed 50 per cent tariff increase.

This request was made by PTECSSAN in a letter signed by Okonu Abdullahi, the organization’s general secretary, and sent to the Nigeria Labour Congress.

The association urged the NLC to reconsider its decision to launch rallies and demonstrations over the proposed tariff rise in the letter, which was seen in Lagos on Friday.

COMMUNIQUE ISSUED AT THE END OF THE NLC NATIONAL ADMINISTRATIVE COUNCIL (NAC) MEETING HELD TODAY 29TH JANUARY 2025. pic.twitter.com/pxjGYdkdsi

— Nigeria Labour Congress HQ (@NLCHeadquarters) January 29, 2025

It said that the only way to keep the industry from collapsing was to raise tariffs.

“If the sector is allowed to collapse, other sectors, including finance and security, will be affected,” PTECSSAN said

PTECSSAN said that the sector had, hitherto, been burdened by rising operational costs.

“The removal of fuel subsidy by the government has led to an exponential increase in the prices of petroleum products, thereby increasing the cost of maintaining telecommunications sites across the country.

“The price of Automated Gas Oil used in powering base stations rose from N842.25 to N1,441.28 between May 29, 2023, and Jan. 27, 2025.

“Similarly, the price of Premium Motor Spirit used to fuel field engineers’ cars increased from N198 to N1,030 and higher within the same period.

“Furthermore, the introduction of a floating exchange rate policy has increased the cost of importing equipment needed to maintain and upgrade telecommunications infrastructure,” PTECSSAN said.

The group added that telecommunications providers now had to pay extra to import equipment because the value of the Naira had dropped from N460 to N1,700 to the dollar.

It underlined that the implementation of a new electricity tariff with various bands had made the high cost of operating telecommunications installations even worse.

It claimed that if the government did not allow the rate rise, telecommunications companies operating under the auspices of the Association of Licensed Telecommunications Companies of Nigeria (ALTON) had been warned that the industry would soon collapse.

According to PTECSSAN, one of the sector’s CEOs had likewise compared the current state of affairs to that of a patient on life support.

Additionally, the group noted that the proposed rate rise would allow telecom companies to raise employee compensation, which had been static because of rising operating costs.

It said that although employees in the public and private sectors had benefited from pay increases brought about by the new minimum wage law, those in the telecoms industry had not been as lucky.

“Some telecommunications operators have started considering service shedding across the country to break even, which would affect other sectors, including finance and security.

“We, therefore, appeal to the NLC to rescind its decision to embark on protests and demonstrations against the proposed tariff increase, as this is the only way to prevent the collapse of the sector,” PTECSSAN said.

NAN