LAGOS – Telecom subscribers across Nigeria have endured mounting frustration over soaring costs for data and call services following a government-approved 50 percent tariff hike on telecom operators, forcing many users to scramble for affordable alternatives amid declining network quality. Meanwhile, unions representing workers in the oil sector have outrightly rejected government plans to sell joint venture oil assets, warning of serious future risks to national revenue and employment.
The tariff increase, approved about eight months ago, has severely strained subscribers’ budgets in a challenging economic environment marked by rising inflation and hardship. According to Deolu Ogubanjo, President of the National Association of Telecom Subscribers (NATCOMS), many Nigerians are struggling to cope with the higher charges. “The 50 percent hike is hurting ordinary citizens who depend heavily on mobile communication for personal and business use. Many have called for a reconsideration of the tariff increase to between 10 and 35 percent to ease the pain,” he said.
Subscribers report calls and data services have become less affordable and unreliable. A Lagos-based online vendor, Miss Favour Okereke, lamented that “before the increment, N100 call credit could give you about nine minutes or even more, but now, you won’t get up to seven minutes.” She added that with the digitalized world revolving around data, she now spends more on data than on call credit.
Frequent call drops, network outages, and poor internet speeds accompany the tariff hike, worsening subscribers’ experience. Collins Otegbulu, former South-East regional manager at a telecom firm, noted, “Subscribers are suffering from poor network services even as charges soar. Telecom companies hike tariffs but don’t seem interested in improving quality.” Business owners and multi-network users report switching between providers in search of cheaper and more reliable plans, registering new lines with hopes of better rates.
The telecom industry’s financial woes reflect rising operational costs. According to the Private Telecommunications and Communications Senior Staff Association of Nigeria, increases in petroleum products used to power network base stations and engineers’ vehicles have driven expenses up sharply. The price of automated gas oil has risen from N842.25 to N1,300 per litre, while petrol price surged from N198 to N1,030. Electricity tariffs have also jumped significantly, impacting telecom companies’ financial viability. The union warns that these pressures risk network service shedding, where services may be unavailable at times in certain areas, threatening economic disruption.
Telecom unions have appealed directly to President Bola Tinubu for urgent intervention to stabilize the sector and protect jobs. “If this situation is not addressed, the collapse of the telecom sector is imminent and could have a domino effect on the broader economy,” the union cautioned, describing the sector as “a patient on life support”.
Simultaneously, unions in Nigeria’s vital oil sector have expressed strong opposition to government plans to sell joint venture oil assets, fearing negative consequences for future state revenue and employment security. They warn such divestments risk undermining long-term national interests for short-term gains.
The intersecting pressures in telecom and oil sectors highlight ongoing challenges in Nigeria’s economic landscape, where citizens face higher living costs amid critical industries’ instability.
Looking ahead, subscribers continue to push for more affordable telecom tariffs and improved services, while unions seek government engagement to safeguard strategic oil assets. Both sectors’ futures could shape Nigeria’s wider economic recovery trajectory in the coming months. Policymakers face tough decisions balancing financial sustainability, service quality, and protecting citizens’ welfare.
Readers can stay informed on these evolving issues as further developments emerge and government responses unfold.
