…Want cases of drop calls, poor connections, arbitrary charges addressed
…We are brutalised on all fronts, they lament
Nigerians across the country have reacted sharply to the recent announcement of the approval of 50 percent tariff increase by the Nigeria Communications Commission (NCC), saying the tariff, when operational, would increase hardship on the people. Some however, said that it was long overdue.
After a long-drawn debate on the desirability or otherwise of a huge tariff, the NCC recently granted the telecommunications companies leave to hike the cost of their services to their subscribers.
The suggestion by the stakeholders in the telecoms space, who speak in the interest of the masses, that the tariff increase should not exceed 10 percent for now, has not struck the right chord.
Speaking with Nigerians in some states on their views and possible implication of the development on consumers, respondents said that the timing was inauspicious, giving the hardship in the country. They however, pointed out that the telcos also needed to stay in business.
Their major concern is on the margin of increase.
They also urged the telcos to improve on their services and that they must urgently address connection challenges often being experienced.
The Association of Licensed Telecommunications Operators of Nigeria and the Association of Telecommunications Companies of Nigeria had raised several concerns and asked the NCC to review call tariffs upwards. They actually made a case for 100 percent tariff increase.
Reacting to the development in an interview with journalists in Lagos recently, the President of National Association of Telecoms Subscribers (NATCOMS), Deolu Ogunbanjo, said the NCC did not carry subscribers along in the arrangement.
Ogunbanjo said NATCOMS understood the dilemma faced by the telecoms industry and had suggested a five percent to 10 percent marginal increase in tariff.
He also said that the Federal Government’s approved 50 percent tariff hike was unacceptable.
“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (PoS) operators. It will increase operational costs,” he said.
Emmanuel Alao who resides in Ibadan, Oyo State, South West Nigeria, said that with the present inflation and declining purchasing power, the increase would add additional burden on consumers.
Alao, an engineer, said this would inflict more pains and hardships on many Nigerians who are still battling to survive and operating under the harsh economic policies of government.
Mustapha Adekunle, a tricycle commercial rider, said: “They just want to kill us in this country with increases here and there. This again will further affect low-income earners and small businesses.
“For many citizens who are already struggling to make ends meet, this hike in costs adds another layer of financial burden on them; all of us!”
A civil servant who spoke to BusinessDay on under condition of anonymity said that coupled with inflation on the high side, unbearable cost of living in which many could hardly feed, this will be another hardship for the citizenry.
She said that this would further impoverish Nigerians and that some families may be disconnected and widen the gap in access to information and opportunities.
Jubril Adodo, a retiree, said that instead of government to provide relief for the citizens as a result of the harsh economic environment, they keep increasing taxes, tariffs, and fuel prices, making life unbearable for many Nigerians.
“A good number Nigerians are already being subjected to hunger, pain and even avoidable, yet more pains are coming. What a country!?
Ayoola David, a barrister, said that the country needed functioning industry, and that the telecoms sector serves as one of the best that deserves government’s protection at this time because of the growth potential that it has, and the high-level impact it has in the Nigerian economy.
“An increase at this time isn’t so bad; the last time we saw tariff increase was 12years or 13years ago; that was the last time there was an increase in this sector; an increase in this sector is worth it; most of them have been operating on heavy losses; we need this companies to make heavy investments and we need them to pay heavy taxes if we want them to stay in business,” he said.
Ayodele of Chapel Hill said the infrastructure and network service would have to improve if they intend must charge more.
Read also: With telco tariffs set to rise, what’s next for Nigerian consumers?
“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it. So, the telecos must improve on their services to justify the huge charges,” she said.
Abiola Obadara, an Ilorin-based Public Affairs analyst, said: “It’s one of the signs of the present economic situation in Nigeria. Cost of production has increased in the industrial sector of the economy, especially, with the removal of oil subsidy by the government.
“The telcos have to stay afloat in business and buoyant in the economic reality of our time. I want to say that the telcos have even been doing a bit of increase in charges and prices in their tariff, particularly, when you observe the trend in recent time. So, to a large extent, it’s a reflection of the reality of the time.
“I would then say that Nigerians should just adjust to the situation by maximising use of data and be prudent. This is necessary so that the prices would not dig hole in their pockets.”
For Ndidi Emmanuel, a civil servant, the 50percent increase in tariff plan is far from a welcome development.
“Honestly, this move is not friendly to the poor masses. Yesterday (Thursday), I purchased N500 airtime online and called my younger sister.
“I thought it would last for at least two hours, but suddenly, the call was cut off. When I checked my phone, I saw the duration was only 54 minutes and 35 seconds. I turned to a colleague nearby and asked, ‘What happened?
“Things are getting worse in this country. The fuel subsidy removal is already affecting us, and now with this increase in tariff plan, it means we can no longer make calls as we used to. Where are we heading?”
Aliyu Musa, Public Affairs commentator, also said: “One cannot blame telcos for this hike in their tariff in Nigeria. They are in business for profit maximisation whether we like it or not.
“The truth is that tax regime imposed by Nigerian government is the main reason for this, coupled with hike in petrol price and floating of naira. If the telcos don’t increase their tariff, how will they survive? The cost of running business in Nigeria is becoming a nightmare daily due to government policies.”
Charles Obot, a professor at the University of Uyo, Akwa Ibom State, believes that though the increase was expected, a 50% hike was unfair.
“In all fairness, telecos like other business concerns in Nigeria are operating in an unfriendly environment, particularly cost of energy. Therefore, if even the Federal Government as a major stakeholder in the oil industry has approved the increase in the prices of petrol and electricity, nobody should expect the telecos to be ‘Father Christmas,’ in their pricing,” Obot said.
He however, said that the increase was not fair to subscribers, adding that subscribers were being subjected to bear the brunt of the government’s failure.
For Paul Umoh, a senior citizen in Uyo, the state capital, the recent tariff will increase hardship for Nigerians.
According to him, “Everything in Nigeria is going south because of the economy. I am not surprised that Nigerians were not protesting about the hardship.”
Etorobong Inyang, a media practitioner in Uyo, civil society groups were not helping matters as they have done little or nothing to side with the ordinary Nigerian.
“The increase in tariff shows that the Federal Government is insensitive to the pains and sufferings of Nigerians. Government policies should have a human face,” he said.
Goodluck Ibem, president general, Coalition of South-East Youth Leaders (COSYL), observed that the increase will yield more revenue to the Federal Government.
According to him, telecommunications operators are making a lot of profits, while paying little or nothing to the government, both at the state and Federal levels, which makes the increments a welcome development.
He urged the Federal Government to ensure that the telcos do not transfer the tax burden on the consumers at the end of the day.
He accused telecommunications operators of not carrying out their corporate social responsibilities well, stressing that they rarely execute projects or any form of social responsibility in their host communities.
“So, we commend President Bola Ahmed Tinubu, for coming up with such idea that will help to ensure that the revenue profile of the government increases, which is needed and necessary for development,” he said.
Fortune Ulu, a media practitioner, while buttressing Ibem’s views, said that the telcos were in business to make profit and remain afloat, considering the vagaries of the Nigerian operating environment; he however, noted that they should also consider the purchasing power of consumers, which is currently at its lowest.
He said: “They’ve got to meet their obligations, agreed. Their investors expect great and handsome returns. But what about the average consumer and user of the services? Are we also thinking about them? What of affordability? Will the telecom services still be within their reach?”
Ulu argued that the average Nigerian is already traumatised, by the economy, as a result of the policies of the government.
“Inflation is so high and the average necessities of life are almost all getting out of reach. Now, telecom services are joining the list.”
He appealed to the government and telecommunications operators to engage in wider consultations with the organised labour and the public to avoid the impending showdown. “We shouldn’t inflict pains on ourselves and the economy anymore,” he pleaded.
For Obinna Nwagbara, executive director, Youth and Students Advocates for Development (YSAD), a civil society group, Nigerian Government is not interested in whether consumers get value for their money or not.
He said that government cares less about the number of citizens, who slide into poverty, as a result of their policies.
According to him, Nigerians are struggling with the increase in pump price of petroleum products, electricity bill has gone up, there’s increase in bank charges and all these are happening at the same time.
He said that pushing citizens into poverty and releasing money as humanitarian assistance to the poor is self-deceit.
He urged regulatory agencies to pay more attention to the quality of services rendered, by the telcos rather than increase tariff, stressing that Nigerians are not getting value for their money.
Suliman Anyalewechi, a media consultant and public relations expert, observed that the recent increase in telecommunication charges is in tandem with the President Bola Tinubu’s tax reform policy.
According to him, “Anybody, who is conversant with the antecedents of President Tinubu’s administration, as exemplified in Lagos, when he was the governor and his obsession for taxation, will tell you that his administration would benefit hugely from the increase.
“His idea of economic reforms begins and ends at the level of taxing people, directly or indirectly. So, I’m not surprised at the increase. First of all, it is not today that these telecom companies started arm-twisting the Federal Government. They did it towards the last 2-years of former President Muhammadu Buhari’s administration, but Buhari resisted them.
But as it is, they have capitalised on the weakness of Tinubu’s administration, vis-a-vis his obsession for taxation to increase tariff.
“The quest for these communication giants to shoot up rates is in tandem with the tax policy of the present administration in the country.
“Don’t forget that by the time he increases this their tariff, Nigerians will pay more, while the telcos make higher tax returns to the Federal Government.
“Consequently, Tinubu is taxing Nigerians indirectly and no amount of pressure from the Organised Labour or other Nigerians to force the telcos to stop or reduce the increment, would work,” Anyalewechi observed.
Barth Ozah, a resident of Asaba, Delta State, in an interview with BusinessDaySunday, said, “In the first place, the Federal Government is not fair to Nigerians.
“Yes, you have increased the cost of energy. What palliatives have you put in place? None! As we speak, in Asaba generally, especially the area I live; for the past two to three years, we hardly have light more than three hours in a day. And that light comes between 12midnight and 3am. Imagine a telecommunication company that has three hours light for seven days! How do you expect them to cope?
“Ordinarily, they have to increase tariff because that’s the only way they can get money in order to buy diesel to power their masts and give Nigerians good services. But then, are you going to keep overtaxing the citizens? This is unfair on the part of the Federal Government.
“FG should find a way to address this issue of energy as it pertains to fuel, diesel and kerosene. They should make it available and ensure the cost are reduced so that Nigerians can transport themselves from one place to another so that the Telecos can power their mast because it is failure in the first place that the FG cannot provide electricity.
“I don’t blame the Telecos, but the FG. It’s like me; I used to buy diesel of between N1,500 and N2,000 for my Corolla car, to transport myself to my village, a journey of about an hour drive. Now, I spend an average of N15,000 for same journey. Can you imagine? So, if a telecommunication company that is running business for hours with N60,000 before, now it is running same with about N300,000 to N400,000, what do you expect? So, government should find a way to address this. It is normal for the Telecos to increase their tariff.”
Victor Sorukwu, another resident, condemned the tariff hike. According to him, the social security, economic environment to cushion the effect of all these hikes are not yet in place.
“Yes, we understand the global inflation, high rise in economic activities but again, we have an economic environment that is harsh. An economic environment that is not tampered by the necessary palliatives. Even when the palliatives are made available, they are hijacked by the political processes. So, the Nigerian case is a peculiar one. No hike is favourable or comfortable because the environment is harsh.
“The source of income, the earning and spending power of the masses is still very low. How much are workers paid as salary? So, you discover that it will only make the economy harsher.
“It is first going to cause a tighter economic lifestyle because the austerity measures that people need to adopt in order to survive will be stringent.
“For me, no matter what economic indices and factors they say are determining these hikes, they are not favourable. I think the policy formulators should find a way to tamper things. The way they are going is very frustrating,” he said.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
