50% TELECOMMUNICATIONS TARIFF HIKE: “Phones Not for the Poor”

– Aj. Dagga Tolar

It is clear that the Tinubu regime is replacing the whip of its predecessor, Buhari, with a scorpion’s tail in dealing with the working masses. There is no other way to describe the approval of a 50% telecommunications tariff hike for telecommunication firms (MTN, AIRTEL, GLO, 9Mobile) that have posted billions in profit margins over the past decades. Nigerians have already been largely exploited—from the sale of SIM cards, which ought to be free, to expensive handsets, per-minute call billing, and high tariffs compared to other countries relative to income earned.

To now endorse this tariff hike, which raises the cost of a per-minute call from ₦11 to ₦16.5, 1GB of data from ₦287.5 to ₦431.25, and SMS prices from ₦4 to ₦6, effectively turns communication into a luxury for the rich. Even at current rates, many Nigerians cannot afford to recharge their phones. This tariff increase echoes the infamous 1989 statement by David Mark that “telephones are not for the poor”. In essence, the logic of capitalism reduces essential needs to commodities for profit, leaving those who cannot afford them behind.

According to Mr Karl Toriola, Chief Executive Officer of MTN Nigeria, the telecommunications firms are seeking “approximately 100% tariff increases,” citing increased diesel costs (from pre-COVID levels of ₦230 to over ₦1,000 per litre) and a soaring exchange rate (from ₦424.50 to about ₦1,550).

This admission reveals that the crisis in the telecommunications sector is a direct result of government policies of deregulation and devaluation. Yet, this is not unique to telecommunications—it mirrors the dismal state of other key sectors of the economy. Despite the catastrophic consequences of these neoliberal policies, the Tinubu regime insists on continuing down this path of economic ruin, claiming these measures will “revive” the economy. In reality, the economy deteriorates further, with the working masses bearing the brunt of these policies.

The Impact of Neoliberal Policies

Tinubu’s declaration that “subsidy is gone” continues to have far-reaching negative effects. Fuel prices have shot up from ₦197 to over ₦1,000 per litre. Electricity tariffs have skyrocketed, with an apartheid-like distribution model that reserves electricity for those who can afford the astronomic increase, categorised as “Band A” users, to the detriment of the majority. Even this flawed model has failed, as distribution companies (DisCos) focus on maximising profit without investing in the country’s electricity generation capacity. With less than 5,000 megawatts of output and outdated infrastructure, the country relies on load-shedding mechanisms, plunging large areas into darkness.

Inflation has reached an unprecedented double-digit figure of 34.6% and shows no signs of abating. A regressive tax reform imposes additional burdens on ordinary Nigerians. Now, the telecommunications tariff hike further exacerbates the plight of the working masses, making Tinubu’s promise of relief for Nigerians a mere mirage. This relentless assault on the economic well-being of the populace has stretched the patience of the working masses to breaking point.

Call for Organised Action

The Movement for a Socialist Alternative (MSA) welcomes the Nigeria Labour Congress (NLC)’s call for collective action, including a nationwide boycott of telecommunication services. However, such measures, though necessary, are insufficient. The working masses must not limit their demands to the reversal of tariff hikes. Without fundamental changes, another increase will soon follow.

The telecommunications sector must be nationalised and placed under the democratic control of workers and the masses. A government that prioritises the well-being of its citizens would manage the nation’s wealth and resources to meet the needs of the majority, rather than enriching a handful of private capitalists.

Lessons from NITEL

Nigeria once had a national telecommunications provider, NITEL/MTEL, which was deliberately run aground by the ruling elite. They refused to provide the necessary funding and democratic management, paving the way for private profiteers to dominate the sector. At its peak, NITEL had over 400,000 subscribers and was competing effectively with private firms like MTN and Airtel.

While there is scepticism among the working masses regarding the ability of the trade unions to consistently provide the leadership needed to confront the Tinubu regime, union leaders must rise to the challenge. Beyond issuing statements, they must take concrete steps to mobilise workers and demand, among other things, a new minimum wage that reflects the reality of current economic conditions.

The Way Forward

Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers (NATCOMS), has proposed the use of “initial public offerings” and the sale of shares as alternatives to tariff hikes. However, this proposal fails to address the fundamental issue: the greed for profit that drives the telecommunications firms. Mr Toriola himself warned that, without significant increases in tariffs, the telecommunications sector may collapse, similar to the fate of NITEL.

The solution lies in government intervention. The telecommunications sector must be run for the benefit of the working masses, with compensation paid only on proof of need.

Unfortunately, the Tinubu regime has demonstrated that it prioritises the interests of the billionaire elite—oil barons, tycoons, and financial magnates—over the needs of ordinary Nigerians. This is why the NLC president’s question, “When will the government stand for the people it swore to protect?”, has already been answered: it will not.

The MSA continues to advocate for a Socialist Alternative, urging the working masses to break away from pro-capitalist political formations and organise under an independent political banner. Only by confronting the ruling class head-on can the working masses put an end to the misery and deprivation imposed by this exploitative system.