Telecom workers hopeful as 50% tariff hike signals possible salary increase

Nigerian telecom workers anticipate salary hikes as a 50% tariff increase aims to boost industry revenue after years of stagnant wages

 

[dropcap]N[/dropcap]igerian telecom workers are optimistic that the recent 50% increase in telecommunications tariffs will lead to long-awaited salary increments.

Also read: Telecom operators call for urgent tariff review to sustain industry

The Private Telecommunications and Communications Senior Staff Association of Nigeria (PTECSSAN) has expressed hope that the new tariff structure will generate sufficient revenue for telecom operators to address years of stagnant wages.

The Secretary-General of PTECSSAN, Abdullahi Okonu, highlighted that telecom firms had struggled with rising operational costs while maintaining static tariffs.

He noted that the newly approved tariff, sanctioned by the Nigerian Communications Commission (NCC) on 20 January, would provide financial relief for the industry, allowing operators to implement salary adjustments.

Okonu emphasised that previous regulatory restrictions had forced telecom firms to absorb losses despite inflation, naira devaluation, and increasing expenses.

He stated that the prolonged delay in tariff adjustments had led to $11.3 billion in industry losses, reduced investment in infrastructure, and declining service quality.

The tariff hike announcement sparked widespread controversy, with consumer groups and labour unions voicing concerns over its potential financial burden on subscribers.

The Nigeria Labour Congress (NLC) initially called for a nationwide protest set for Tuesday, 4 February 2025. However, following a high-level meeting with federal government representatives, the NLC suspended the planned demonstration.

Both parties agreed to engage in negotiations over the next two weeks to address concerns surrounding the tariff hike.

Okonu commended the NLC for choosing dialogue, stating that while higher tariffs may be challenging for consumers, they are necessary for sustaining the telecom sector and improving employee welfare.

Despite being a competitive industry, telecom operators remain under regulatory control, requiring NCC approval for any tariff changes.

This restriction has historically hindered their ability to respond to economic shifts. However, the new price adjustment marks a significant step toward ensuring financial stability within the sector.

Also read: NCC to roll out new tariff plans for telecom operators on December 13

The association remains hopeful that the tariff hike will not only prevent further financial losses but also enable employers to offer salary increases, aligning telecom workers’ earnings with inflation and minimum wage adjustments in other sectors.