Telecoms union disagrees with NLC, supports tariff hike to avert sector collapse

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By Chinenye Anuforo

The Private Telecommunications & Communications Senior Staff Association of Nigeria (PTECSSAN) has publicly disagreed with the Nigeria Labour Congress (NLC) over the proposed 50 per cent increase in telecommunication service tariffs, arguing that the hike is necessary to prevent the industry’s collapse.

In a letter addressed to the NLC, signed by Okonu Abdullahi, General Secretary of PTECSSAN, and obtained by Saturday Sun, the group expressed concerns about the NLC’s planned protests against the tariff increase, stating that the congress had acted in error without consulting them.

“It is our firm belief that the congress leadership has acted in error in taking these decisions without prior consultation with our Union that operates in the sector,” the letter stated.

PTECSSAN emphasised the dire financial straits facing telecom operators, citing the removal of fuel subsidies and the fluctuating exchange rate as key factors driving up operational costs.

The union highlighted the dramatic increase in the price of Automated Gas Oil (AGO), used to power base stations, from N842.25 to an average of N1, 441.28 since May 2023. They also pointed to the soaring cost of petrol, which has risen from N198 to over N1, 030 in some areas, impacting the mobility of field engineers responsible for maintaining these crucial sites.

“Therefore, there is no way out of high running costs on maintenance of the telecommunications sites,” the letter asserted.

PTECSSAN further explained that the fluctuating exchange rate, with the Naira depreciating from N460 to approximately N1, 700 against the dollar, has made importing essential telecom equipment significantly more expensive.

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