The hike in telecom, ATM charges

AMID the excruciating cost of living and the consequent social discontent, Nigerians were stunned recently when telecommunication companies announced a 50 percent increase in their tariffs. In its reaction to the increment, the Nigeria Labour Congress (NLC) not only condemned the implementation of the tariff hike but also demanded an immediate reversal. Before this latest increase, the NLC and the Federal Government had earlier jointly constituted a 10-man committee to deliberate on the tariff hike, which was then a proposal. A committee was saddled with the task of getting back to the government and the NLC within two weeks with its report. The government and the NLC then agreed that the report therefrom would set the tone for a final decision on the new telecom tariff structure.

In defiance of this agreement, telecom firms, without waiting for this committee’s decision, proceeded with the increase. This also apparently prompted the NLC to issue a March 1 deadline which will sound the commencement of a total shutdown of operations if the tariffs were not reversed. Joe Ajaero, President of the NLC and its General Secretary, Emma Ugboaja, in a communique they signed after the NLC Central Working Committee meeting in Lokoja, Kogi State, accused the telecom firms of betrayal of trust and disregard for due process in its decision on the tariff increase. According to the NLC, implementing the hike before the 10-man committee had completed its review indicated that the telecom operators had no respect for institutional intervention. The NLC equally gave the government its own portion of blame in the matter. According to the congress, the government had, by so doing, failed in its constitutional role of protecting its citizens from corporate exploitation. The NLC thus rolled out activities which  it called workers’ resistance to the 50 percent increase. First was its directive to all Nigerian workers and other willing citizens to boycott the services of MTN, Airtel, and Glo daily between 11:00 a.m. and 2:00 p.m. This, it said, would go into operation from February 13 until the end of February. In the NLC’s words, “All workers and citizens are urged to suspend the purchase of data from these companies, which has also become one of their greatest tools for exploiting Nigerian citizens.”

Amid the dilemma facing Nigerians at this sudden and unexpected tariff increment, the Central Bank of Nigeria (CBN) also rolled out what it called new transaction fees for Automated Teller Machines (ATMs) which would take effect from March 1, 2025. In a circular issued by John Onojah, the acting Director of the Financial Policy and Regulation Department of the apex bank, the CBN said the revised charges were aimed at addressing the increasing operational costs and to enhance the efficiency of banking services. Since 2019 when the CBN reduced the bank withdrawal fee from N65 to N35, the currently review marks the first change in ATM transaction fees. Justifying the new transaction fees, the CBN claimed that the updated fees were in tandem with Section 10.7 of the CBN Guide to Charges by Banks, Other Financial and Non-Bank Financial Institutions (2020). It also said that the review “is expected to accelerate the deployment of ATMs and ensure that appropriate charges are applied by financial institutions to consumers of the service.”

While the increases in the prices of services rendered by the telecom companies and the banks arose from the exponential increases in the cost of doing business, it is still bothersome that they came at a time when the Nigerian people have literally been stretched thin in all existential matters. In nearly two years of the current administration, existence has become a huge burden to the people due to the economic policy. Adding the telecom tariff increase and the CBN ATM cash withdrawal fees to the already overburdened Nigerian people translates into a further excruciating hike in their cost of living. As noted earlier, we are aware of skyrocketing jumps in the cost of services in Nigeria. Indeed, the CBN made reference to this when it said the increase was “in response to rising costs and the need to improve the efficiency of Automated Teller Machine (ATM) services in the banking industry.” It is in this regard that we agree with the NLC that the government, which was expected to safeguard the people from the sharks of the financial world, failed to protect them. This, however, is where our agreement with the NLC ends.

The labour union’s solution to the unexpected heavy burden put on the Nigerian people is not only unworkable, it is archaic and speaks to emerging complaints about the effectiveness of its solutions to government policy. First, the telecom companies are not government agencies but businesses that want to maximise profit from their operations. In this regard, the NLC ought to direct its ire mainly at the government. Ordering Nigerians to boycott the services of the companies is not only ineffective, it is unworkable. While the telecom operators must make profit from their operations, the NLC should appeal to their conscience to factor in the already impoverished condition of the Nigerian people while seeking to profit from their operations. In the final analysis, however, the NLC’s quarrel should be with the Federal Government whose harsh economic policies have made the operational costs incurred by the companies operating in the country to skyrocket. We also implore and plead with the companies to be sensitive to the feelings of the Nigerian masses.

Overall, the government must realise that as good as its quest to fine-tune the raw edges of the economy which it said was almost comatose before it came on board, it can only govern living countrymen and women. It should thus endeavour to make the business climate clement so that banks, telecoms companies and indeed all business operators providing services to Nigerians are not forced to transfer their economic burdens to Nigerians. Nigerians are indeed suffering.

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