Nigeria's largest labour union has suspended a planned nationwide protest against a 50% hike in telecommunications tariffs and will negotiate with the government to resolve the dispute within two weeks, both sides said on Tuesday.

The Nigeria Labour Congress (NLC), representing millions of workers, had slated a February 4 demonstration after rejecting the tariff increase approved last month by the telecoms regulator - the first such rise in over a decade.

Operators have cited surging operational costs linked to inflation nearing 35% and a weakening naira currency as reasons for the tariff rise. The union called the hike "insensitive" and threatened a telecoms service boycott or strike unless the government engaged in talks.

The tariff dispute underscores broader tensions over living costs in Africa's most populous nation, where President Bola Tinubu's economic reforms, including fuel subsidy cuts, power hikes and currency devaluations have worsened financial strain.

Following talks late on Monday, the NLC and government agreed to form a 10-member committee with equal representation to review the hike and to propose solutions by February 17.

"The outcome of this committee will determine our next line of action in terms of protest, in terms of boycott, and in terms of even withdrawal of services," NLC President Joe Ajaero told reporters.

Both sides committed to a "stay action" halting further escalation pending the committee’s findings.