Opinion
Minus fuel subsidy, plus wahala, By Dan Agbese
Crude oil has been good to our nation. Very good, indeed. It is easy to rhapsodise our oil wealth and the little village, Oloibiri, where it all began in 1956. Oil wealth rescued Nigeria from the economic pit of hell and transformed it into a modern nation in the eternal time it takes to say Lord Lugard. It made the country famous and numbered it among the rich nations of the earth.
Without the stupendous oil revenue, we most probably would still be clawing our way out of that pit as one of the least developing nations burdened with poverty and diseases. Life here would be more brutish and even shorter. But there would be no thieves in high places or bandits or kidnappers because there would not be much money to steal. No money, no corruption. Millionaires, let alone billionaires, are not minted from peasant agriculture. Because crude oil is, we are where we are as a nation, and we have become what we are as a nation. That is the good news known to every primary school pupil in the land.
The bad news is that there is such thing as oil curse. Michael L. Ross wrote his 2012 book, The Oil Curse, on it. He did not define the curse of oil. He chose instead, to point to its negative effects on the lucky developing nations under whose soil nature deposited the precious oil-bearing hydrocarbon. However, he made the point that more money in the coffers of governments of oil-rich developing nations has not been the blessing it ought to be. Or, to put it another way, it has been a mixed blessing. A combination of forces has turned oil into a curse. When American oil prospectors told King Idris of Libya that they had struck oil in his country, according to a quotation lifted by Ross, he did not jump for joy. Instead, the king told them with a certain degree of royal prescience: “I wish your people had discovered water.”
On page 234 of his book, Ross wrote: “The oil curse is largely caused by the unusual properties of petroleum revenues. Unless countries are already wealthy and have strong institutions at the time that oil production begins – Norway or Canada – they can cause political and economic problems.”
The current social dislocation and the economic woes occasioned by the removal of petroleum subsidy points to how careless we have been in elevating crude oil to the main source of our national wealth. We earn some 80 per cent of our foreign earnings from it. Easy wealth has lulled into unpardonable complacency in the management of our oil wealth.
Crude oil is not a dependable pillar of social and economic development in an oil-producing nation. Crude oil is a depletable source. The oil fields that gush oil today can dry up tomorrow and sink our nation below the globally recognised poverty level. Crude oil is a buyers’s market. When the buyers lower the prices, the treasuries are empty.
It follows that an oil-producing nation that builds its castle of social stability and economic progress on oil revenue is building it all on fine sand. The castle is sooner than later shattered by the winds of volatility in the crude oil market.
Our leaders, in khaki and agbada, never failed to talk of diversifying the economy to cushion it against the inevitable bad attitude of crude oil and save the country from descending from the Olympian heights of oil wealth into the marsh of poverty. Agriculture, even in its peasant stage, is a more dependable pillar of social stability and economic development. No one needed telling. But more lip service was paid to it than the concrete and sustained steps it needed. So, the agriculture land sprawls in all directions in its brown glory. The green revolution was mere bureaucracy.
If you ever had problems with appreciating our precarious position in our near total dependence on crude oil, the current difficulties in managing the national economy post the removal of fuel subsidy from June last year should tell you what hold crude oil has on every aspect of our national life. Its power goes far beyond the earnings from it. No one ever thought that the removal of fuel subsidy would turn out to be such a great social, political, and economic problem.
The fuel subsidy was rightly conceived as part of the welfare system to make fuel relatively cheaper for the citizens of an oil-producing nation. It was turned into an easy money-making venture by men and women who could not even spell crude, as in crude oil. The corruption in its administration became a source of national frustration. It should follow that its removal should rank as a calculated attempt to de-rich the oil importers and save the country what was corruptly stolen through the corrupt administration of the fuel subsidy regime. It has turned out that the removal of the fuel subsidy is much more complicated than lancing the boil on the nation’s economic management nose.
Crude oil and the easy flow of petro-dollar from it has made the easy life a virtue in our country. Whatever threatens this life of somnolence is resisted by the primary beneficiaries of a social and economic system that protects itself from radical reforms. Oil glut resulted in lower prices paid for our crude oil in 1982. President Shehu Shagari imposed austerity measures to rein in our spending on non-essential goods such as champagne and Argentine steak and stabilise the system.
An instant reaction by our young people was exemplified by the Andrew syndrome. They could not take it. And there began the steady stream of the Andrews checking out known as brain drain. The whiff of the current economic difficulties gave us a Yoruba word, japa. Our young people are jumping out of the leaking boat in search of greener pastures in countries built, not without some difficulties by their citizens. Their citizens stayed home and salvaged their countries. We choose not to remember the exhortation by Major-General Muhammadu Buhari, to remain here and salvage the country together. When he came as a military ruler, there was Andrew; by the time he left office as president, there was/is japa.
If poverty is the root cause of social and political problems and instability, it should then follow that wealth will be a solution to, and a stabilising factor, in all countries whose revenues largely depend on oil wealth. It is not so. One reason is that oil wealth parades paradoxes exemplified by our history in the management of our oil wealth. We are a rich but poor nation. Our country is the officially crowned poverty capital of the world. Because of oil, we are rich and yet, because of oil, we are poor. We have more poor people in our country, 158 million of them by the last count, than the combined population of the countries of the West African sub-region.
We should not be where we are today. Four oil refineries are enough to meet all our domestic fuel needs. But they have been dead since the death of dodo. We have lived all these years through the contradiction of a major world oil-producing nation exporting its crude and licensing independent oil importers to import the refined products home at prices subsidised by our taxes.
These times tax our economic managers in how best to respond, not just to the public protests in some of our major towns and cities, but more importantly to the present and the future of our national oil economy. When the public space is poisoned as it is now with social protests over the difficulties blamed on the fuel subsidy removal, the choices are made more difficult. The immediate choice is to find a short-term plan to address the people’s grievances and end the protests. One option is to roll back the removal of fuel to appease the people. It is not an option, really. It will only be our national shuffle: one step forward, two steps backward. The government must show courage and determination to pull the nation through this. It must grit its teeth and commit itself to a radical paradigm shift in the management of our economy that will replace our crude oil economy with a sustainable agricultural economy.
Opinion
OF YULETIDE SEASON, PEOPLES EMPOWERMENT, AND OBIO-AKPOR COMMUNITIES
In various countries across the world, the month of December is usually special and unique. From the weather to people’s mood and activities, it evokes some peculiar frenzy that are easily contagious. In diverse ways and practices, people look forward to the season as the perfect time to “wind down” and “close shop” having survived the vicissitudes of the out-going year. For some, it is the period for holidays and vacation. For others, weddings, and numerous social engagements are scheduled during this season. All around the globe, airports are very busy. Same with parks, and sea ports. Generally, people look forward; with excitement to hearty re-connection, communication, and celebrations with families, friends, and loved ones.
Given the global economic meltdown and it’s negative effects on the country, peoples expectations were measured and reasonable. Conscious of the debilitating economic situation that has thrown many people into accentuating poverty and corrosive hunger, many were not confident of enjoying blissful yuletide season. Due to their scant and scarce finances, many people after calculations and conjectures, eschewed from elaborate and grandiose preparations for the season.
For the political class, and those in various leadership positions at federal, state, and local government levels, the last yuletide season was slightly different. In times past, people looked forward to “hand of fellowship” from leaders. Politicians and public officials happily “give back” to their constituents. However, for December 2024, sighting “national economic situation” as comfortable alibi, the expectations of constituents were not fully met. Indeed, there were unconfirmed stories about politicians who devised “ingenious measures” to avoid possible umbrage of their constituents. To extricate themselves from the harassment of hangers-on, and public ridicule by fearless constituents, some politicians allegedly think outside the box. This included, holidays outside the country; remained incommunicado; stayed back in Abuja; hibernated in state capitals as mark of “loyalty” to their principals.
For the people of Obio-Akpor federal constituency in Rivers state, the story was entirely different. Variously described as the melting pot of the Treasure Base; moniker for Rivers, residents and indigenes of the 17 Wards and over 70 communities that make up the constituency experienced flurry of empowerment programmes, give-aways, and convivial celebrations during the yuletide season. According to reports, from the first week of December to the last few days of 2024, the buzz in and around the constituency was spectacular, and electrifying.
In continuation of the empowerment and skills development initiatives; which has been running from mid-2023, emplaced by Rep. Chinda Kingsley, member representing Obio-Akpor Federal Constituency in the House of Representatives, many people from across the communities benefitted. Youths, women, and men who participated in the three-month training programmes which included tailoring, interior decoration, hair dressing, barbing and other relevant skills geared towards self-reliance, and entrepreneurial development were given start-up packs, materials, equipment, and cash. The non-partisan, all-encompassing, and fair-to-all intervention initiative had beneficiaries from various communities across the 17 Wards. From records, the long-list of beneficiaries covers constituents from Rumuewhara, Rumuolumeni, Rumuokoro, Elelenwo, Rumuodara, Rumuola, Rumueme, Rumuepirikom, Rumuodomaya, Choba and other communities within the federal constituency.
Guests, leaders, stakeholders, constituents, and numerous others that attended the closing ceremony and empowerment presentation that held late December in Port Harcourt were visibly elated about the empowerment programmes. As expected, the beneficiaries could not hide their excitement and enthusiasm for the life-changing gesture. Ms. Ruth Ogbona who got a sewing machine confirmed that, “I am very happy for participating in the three-month training. With all what I have learned, and presentation of this brand new, and latest sewing machine, my dream of being a fashion designer is now reality.” Another beneficiary, Ms. Peace declared that, “it is a dream come true. I thank God for this opportunity which will make me and others grow up, and be better people in our communities.”
Some other beneficiaries while expressing their gratitude to Rep. Chinda alluded to the transparency of the various training programmes, noted that the initiative; which is still continuing is arguably the first by any legislator in the state. Mr. David King said that, “I and virtually all other participants were selected fairly and freely by the coordinators. I did not lobby or spoke to anyone. I thank Chinda for this rare privildge. He is a blessing to the people of Obio-Akpor.” In the words of Ms. Suzie, “Hon. Chinda is truly a man of his words because while campaigning he said, ‘I Win You Win’ and made promises not to abandon the people. I am very happy that since August 2023, he has embarked on different empowerment programmes that have positive impact on all of us.” An elated Ms. Amadi declared that, “I am excited about this empowerment material which I have desired for many years. That I am a beneficiary without knowing anybody makes it more fulfilling and heart warming. My prayer is that God will continue to bless Hon. Chinda in all he is doing.”
Cognisant of the premium placed on Christmas and New Year celebrations by people, Rep. Chinda distributed different food items, and condiments around Obio-Akpor. These included rice, beans, garri, groundnut oil, tomatoes, maggi, and other items. Chiefs, community leaders, elders, and religious leaders benefitted from the end of year give-aways. Others included political stakeholders, political associates, informal groups, trade associations, ethnic unions, women, men, and youths. Indeed, the give-aways covered the entire 17 Wards in Obio-Akpor federal constituency. The impact of the gesture was extensive that it generated widespread commendation and gratitude among various strata of the constituency. A youth leader, Mr. Bright John affirmed that, “we are very fortunate to have a Leader and Representative who is caring, altruistic, and passionate about the well-being of his constituents. Unlike what normally happens, Chinda ensured that the items percolate to everyone.” For Mrs. Priscilla Ogechi Kanu, “this has never happened. Hon. Chinda has contributed positively to the growth of many people. My prayer is that God will perfect everything that concerns him.” Chief Alphonsus Obiereka, a community leader and politicians declared that, “apart from the distribution of food items and assorted condiments to people, as well as empowerment programmes, there are other initiatives by Chinda that are positively touching lives of people, and improving development in and around our various communities.”
Indeed, the people of Obio-Akpor have witnessed numerous projects, programmes, and initiatives that are making broad-based, and cross-disciplinary impacts on residents and citizens. Since 2023, there are visible interventions across the 17 Wards with special focus on skills development, education, health, and agriculture. Some of these includes medical outreach; digital and artificial intelligence trainings; entrepreneurial development on ICT, welding, and chalk production. Others include agricultural training through the OK Chinda Youth AgriBusiness & Food Security Initiative (OYAFSI); provision of educational soft-structures; payment of school fees for some categories of students; yearly distribution of JAMB forms, and many others. Participants and beneficiaries of these programmes, regularly gives testimonies about the timeliness and importance to Obio-Akpor, and Rivers state. According to Nene Bright, one of the graduates of the mid-2024 Artificial intelligence training programme, “it was an eye-opening and career-finding exercise. It has boosted my horizon to unleash my potentials, and exploit the numerous opportunities in information technology.” For Boniface Godswill, “passing through the OYAFSI, is the most reasonable decision I have taken in life. I now know the vast opportunities imbedded in agriculture, few of which I have started to exploit.”
For many people in Obio-Akpor federal constituency, the last yuletide season is one they will not forget in hurry. Days, weeks, and months to come, the sweet feelings, and pleasurable memories will keep resonating in their minds. Collectively, these gestures, initiatives, and programmes are still attracting positive endorsements, and public thumbs up. Many people are confident that Chinda will sustain, deepen, and possibly expand the scope of the numerous interventions. Many are already doing the countdown to 2025 yuletide season.
BOLAJI AFOLABI, a development communications specialist, was with the Office of Public Affairs in The Presidency.
News
“6,000 Medical doctors Left for Nigerians: Opportunities for African Traditional Medicines, Medical Cannabis, and the Revenue Item for the Tax Reform Bills”
By
Dr. Tonye Clinton Jaja,
Executive Director,
Nigerian Law Society (NLS).
On 23rd January 2025, it was reported that:
“…about 1,300 (medical) consultants left Nigeria in the last five years.
On Thursday, the Medical and Dental Consultants Association of Nigeria (MDCAN) said only 6,000 consultants are left in the country.
The association’s president, Muhammad Mohammad, said this during the association’s National Executive Council (NEC) Meeting in Ilorin, Kwara State.”
According to the World Health Organisation (WHO) “ratio of medical doctors to population varies by country and can be used to determine how many physicians a service area needs.
The World Health Organization (WHO) recommends a ratio of one doctor per 1,000 people.”
Going by the current population of Nigeria, which is approximately 230,000,000 (two hundred and thirty million persons), it means that the ratio of medical doctors to the Nigerian population is three medical doctors to one hundred and fifteen thousand persons (3:115,000).
So assuming that a medical doctor takes two days to attend to one Nigerian citizen or resident, it would take the said medical doctor one full year (without taking any holiday) to attend to the said quota of 115,000.
This ratio (3:115,000) is 100 times above the WHO recommended standard ratio of one medical doctor to 1,000 population (1:1000).
As bleak as these statistics may appear, it presents an opportunity for both the receipt of foreign exchange and development of indigenous traditional medicine manufacturing.
Medical cannabis (popular known as Indian hemp or “Igbo”, “weed”, “ganja”) is now the new “crude oil” and foreign exchange earner for many African countries such as the Kingdom of Lesotho.
As far back as the year 2008, Lesotho amended it’s laws to comply with the relevant United Nations legislation to decriminalise and permit the cultivation and sale of the species of cannabis that is known as “medical cannabis”.
“Following the December 2, 2020, vote by the United Nations Commission on Narcotic Drugs, the removal of cannabis and cannabis resin from that Schedule entered into force in 2021. Since 2021, cannabis and cannabis resin remain listed in Schedule I of the Single Convention, alongside extracts and tinctures of cannabis.”
In a nutshell, the implication was that: “At that time, the ECDD, a Committee of the United Nations Office of Drugs and Crimes advised that certain cannabis-derived medicines like cannabidiol (CBD)have no potential to be abused or cause dependence but have significant health benefits for children with treatment-resistant epilepsy, and therefore should not be placed under international control.”
With this re-classification of cannabis, “In the 2019 African Cannabis Report, Lesotho’s industry was projected to be worth at least $92m (£76m) by 2023.”
Revenue in Lesotho’s Cannabis market is forecasted to reach US$3.77m in 2025. The revenue is anticipated to demonstrate an annual growth rate (CAGR 2025-2029) of 1.17%, leading to a market volume of US$3.95m by 2029.”
The BBC reported that:
The high altitude combined with fertile soils, untainted by pesticides, enables growers to produce a high-quality crop, valued all over the world.
Last year, (2017) Lesotho became the first African country to legalise the cultivation of marijuana for medicinal purposes, spawning a new sector in a country where the economy struggles to create employment opportunities.”
Going by the foregoing, Lesotho has increased it’s foreign exchange earnings through the sale of medical cannabis to Canada and other European countries that utilise it for the manufacture of medicines for treatment of cancer and epilepsy.
Let it be repeated here that Lesotho legalised the cultivation of MEDICAL CANNABIS for production of medication. This is different from cannabis that is used for recreational use. This species is not legalised.
This distinction is very important considering that some law-makers frown at the idea or even the mere mention of cannabis (Igbo, weed, ganja, skunk, etc.).
About the year 2022, or thereabouts, I still recall the difficulty of convincing my wife (who is a lawyer not to mention others) about why I was involved as a legal consultant for the drafting of a Bill to Legalise the Cultivation of Medicinal Cannabis in Nigeria. The said Bill was sponsored by Hon. Miriam Onuoha of the House of Representatives, National Assembly of Nigeria.
During my legislative advocacy, to promote the said Bill, the current majority leader told me point-blank that his constituents would not be happy that he is supporting a Bill to legalise the cultivation of MEDICAL CANNABIS, which he kept referring to as “Igbo” (the pidgin English language name) instead of the botanical name (cannabis sativa), which sounds more refined!!!!
I also approached a very popular human rights lawyer who is also a Senior Advocate of Nigeria-SAN to support the advocacy by filing a public interest lawsuit to compel the National Assembly to enact a law to give effect or “domesticate” the said UN legislation that de-classified cannabis. He “diplomatically” turned it down because of the risks to his reputation.
However, the current Deputy Speaker of the House of Representatives, National Assembly who had taken his time to read about the medical value of medicinal cannabis is on record as giving 100% support to the said Bill.
Several medical doctors provided myself and other members of our team with results of scientific studies that support the medical and medicinal benefits of the species of cannabis known as medical cannabis. It was an eye-opener for me.
It was based on those tangible, empirical evidence that I supported the drafting of a Bill for legalisation of cultivation of MEDICAL CANNABIS.
And it is on that basis that I now support the opportunity for Nigeria to increase it’s foreign exchange earnings through the cultivation of MEDICAL CANNABIS.
This has to be done under very strict regulations.
As the Government of Lesotho is doing, they enter into a direct partnership agreement that allows the foreign companies to be involved in the cultivation and processing and exporting of the medical cannabis.
It is not safe to allow indigenous Nigerians to be involved directly in the cultivation and processing and packing and exporting (“make them no come smoke am, or steal am finish”-as we would say in pidgin English language).
From the foregoing, it is obvious that the dearth of medical doctors in Nigeria present a golden opportunity for the growth and development of indigenous traditional medicine industry in Nigeria.
The Nigerian soil and tropical climate supports the growth of plants and trees that are the raw materials for production of medicines that can cure a lot of ailments.
Growing up as a child, I inherited asthma, as my grandfather was always with an inhaler. On one of the boat rides from ogoniland to my village (Opobo town) in the year 1987 or thereabouts, because of the exposure to cold breeze, I suffered an asthma attack and I was rushed to the local hospital upon disembarking from the boat. My mother who witnessed the whole incident told me that it was an elderly person with knowledge of local herbs that boiled some plants that was used to revive me after I drank it. And that was the last time, I experienced any sort of asthma attacks not even when I was resident in the United Kingdom, which has a colder weather than Nigeria. Till today, I have not used any inhaler, since the year 1987.
So this is a testament to the potency of our traditional medicines.
However, we are not paying attention to it as an alternative source of medicine and foreign exchange earnings.
It is hoped that this current dearth of medical doctors in Nigeria will open our eyes to the golden opportunity.
As the saying goes: “God never closes a door, without opening a window somewhere else”-Sound of Music (1964)!!!
Opinion
Playing games with telecom tariff hikes
By Sonny Aragba-Akpore
In what sounded like a death knell or an epilogue as we know it in literature,Association of Licenced Telecoms Operators of Nigeria (ALTON )chairman, Gbenga Adebayo, warned that “if nothing is done, we might begin to see in the new year grim consequences unfolding, such as Service Shedding; Operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected, there will be significant economic Fallout, because businesses will suffer from lack of connectivity, stalling growth and innovation. There will also be national economic disruption where key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions.”
This is frightening should the threat be carried out with full force.
But can the operators act unilaterally?The answer is no and that is where the game begins.
Only last week the government agreed to demands for tariff hikes in the telecommunication industry. This is expected in the coming weeks, as the government aims to address sustainability challenges in the telecom sector. This implies that prices of calls, data and SMS will go up for the average Nigerian.
However, the hike will fall short of the 100 percent increase requested by service providers, with the government seeking to balance sector growth and protecting Nigerians from excessive financial burdens.Bosun Tijani, the minister of communications, innovation, and digital economy, disclosed this during an industry stakeholder forum in Abuja on Wednesday January 8,2025.
Similarly the NCC introduced the Guidance for the Simplification of Tariffs signed out by NCC Chief on November 25,2024 stating among other things that :”This Guidance is pursuant to the regulatory powers of the Nigerian Communications Commission (Commission) under Sections 3, 108 and 109 of the Nigerian
Communications Act 2003 (Act) as well as relevant subsidiary legislations empowering the Commission in that regard. It is also in furtherance of the mandate of the Commission to regulate communications services and ensure consumer protection in the sector.
The Commission hereby issues this Amended Guidance for the simplification of tariff plans, bundles and promotional activities that include tariffs. This Guidance is designed to enhance transparency, improve consumer understanding and foster fair competition”.
It doesn’t stop there as the guidelines also elaborate on what is possible: “For the USSD platform, the following information should be included when a subscriber requests details of their tariff plan
o Name of Plan
o Validity Period (if applicable) Indicate rate per second (and rate per
minute) on-net/off-net
o Indicate rate per megabyte/kilobyte/gigabyte
o Indicate rate per SMS on-net/off-net
o The number of Add-ons subscribed to
Additional Conditions for Tariff Approvals
Operators must offer standalone data bundles, at fair prices to avoid tying consumers with products they do not need Bonuses on promotions must be stated in actual value.For all tariff plans, both the Main and Bonus accounts must deplete at rates within stipulated price floors and caps.
Bundles with shorter validity periods should be prioritized for depletion.
Options for subscribers who exhaust their bundle allowance within the stipulated
validity period should include:
o Purchase of a top-up bundle
o Purchase of a new bundle
o Switch to the default rate of his/her plan
Any Operator wishing to offer services on third-party platforms (Banking applications, etc.) at discounted rates must obtain and comply with the explicit approval received from the Commission (Hot Deals, personalized/ below-the-
line offers, Cashback etc.)
Existing personalised offers approved by the Commission can remain active for the duration of the validity period of the approval. However, the Commission will continue to monitor the market and make necessary
interventions when required.
Below-the-line/personalised offers, Fixed/Fixed Wireless Services, and Device
Financing Propositions must be presented for the Commission’s prior approval process.
No one has ever challenged the powers of telecommunications regulators,the Nigerian Communications Commission (NCC) to regulate the sector which is believed to be the engine room of the economy.
With over 14% contributions to the Gross Domestic Product’s (GDP) and one the biggest single contributors, telecommunications affects every fabric of the Nigerian life.
Understandably then, if the sector players experience haemorhage as a result of economic headwinds, then the economy is truly troubled.
The operators complain loudly that government may have decided to give out telecom services as palliative to Nigerians against the wishes of of Mobile Network Operators (MNOS) therefore suffocating their business.
They alleged that the regulator is playing games, especially against the backdrop of its inability to hearken to their cries of tariff hike.
But the regulator thinks differently as it says the Nigerian Communications Act (2003) especially sections 108 and 109 empowered it to treat such issues in that regard.
The position and powers of the regulator have never been questioned by any of the industry stakeholders. What the operators are saying, for instance, is that some of the regulations by the Commission are so stale that they have little or no impact on modern business operations that can lead to growth or renewal of the industry.
At the time, NCC lost the voice to proclaim the provisions of the Act in Sections 108 and 109 which have no tolerance for the meddlesomeness of a minister or even the President of the Republic if he wanted to supervene. The operators did not also test the provisions of the Act in the Court.
One operator confessed in trepidation that “it’s already very tough doing business in Nigeria. We don’t want the government to come after use with all its powers.”one analyst summed up the NCC imbroglio at a time a Minister,s unnecessary place in the gallery truncated the 10% tariff hike which ended up as a Greek gift .And later short lived thus creating telecommunications as palliative to subscribers who do not have an idea of what operators are living through.
Even the operators are obviously ignorant of the floor price template as another analysis summed it up:
“Once a Floor and a Ceiling have been put in place, playing wthin the band doesn’t need the approval of the NCC,” another source affirmed.
Perhaps in trying to enjoy this regulatory latitude, the operators in 2022 requested for, and got a 10 percent tariff increase on Voice and Data services from the NCC. The Commission reversed itself after a few days, saying the priority of the Minister Isa Pantami was to protect the citizens and ensure justice for all stakeholders. An NCC source told this writer that the reversal was unilaterally done by the minister who coerced the regulator to receive the fall.”
Telecom industry is under heavy burden according to ALTON Chairman, Adebayo.
Emphasizing that without the tariff review, operators cannot continue to guarantee service availability, the ALTON Chairman said though the challenges being faced by the telcos are not new, they have become more acute and more threatening with this passing year.
He noted that rising operational costs, skyrocketing energy costs, the relentless pressure of inflation, and volatile exchange rates, amongst others, have all placed an unsustainable burden on network operators.
Adebayo added that despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire.
According to him, the resources needed to maintain, expand, and modernize telecom networks are no longer available and without intervention, “the future of this sector is at grave risk.”
Keeping the sector afloat
The ALTON Chairman noted that stakeholders have done their best over the years to sustain the sector by upholding the values and importance of telecommunications in society.
“However, let me be clear: our work is far from over. It is not enough to have kept the sector afloat; we must now focus on securing its future. The sustainability challenges we face today are not just a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come.
Due to the increasing costs, telecom operators in Nigeria have since last year been clamouring for an increase in tariffs.
In a joint statement by the Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON), the operators said the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.
They blamed this on the regulatory restraints that have been preventing them from pricing appropriately.
The Nigerian Communications Commission (NCC) regulates prices in the telecom industry and telecom operators are not allowed to implement any price change without the regulator’s approval.
The regulator has said a cost-based study is being conducted to determine if it would approve price increments for the operators.
But the 2022 and 2024 proposals as announced by Toriola were truncated in August 2024 when ALTON traded off the proposals because of alleged misrepresentation saying the misrepresentation of the good intention of telecom operators to secure a slight adjustment on end-user tariff on voice calls and data services has led to the carriers slowing down on the push.
The operators, acting under the aegis of Association of Licensed Telecom Operators of Nigeria (ALTON), had sought the imprimatur of the Federal Government, via the Nigerian Communications Commission (NCC), to adjust call and data tariff to reflect cost of operation in the country.
The NCC had refused to accede to their demand, a decision insiders said was based on political expediency. In a pushback, the telcos had said their services should not be used as palliative to cushion the impact of ongoing economic hardships in the country.
In May 2022,the mobile network operators (MNOS) proposed 40% increase in tariffs.
The operators under the auspices of Association of Licensed Telecommunication Operators of Nigeria (ALTON), proposed a 40 per cent hike in call and SMS tariffs.
The operators said the decision was necessary considering the rising cost of doing business.
A letter to the NCC said the fee for calls will increase from N6.4 to N8.95 while the price cap for SMS will increase from N4 to N5.61.
The association said the telecommunications industry had been financially challenged by an economic downturn that occurred during the COVID-19 pandemic in 2020 and the ongoing Russia-Ukraine war.
ALTON added that the introduction of the five percent excise duty on telecom service providers has heightened the burden of multiple taxes and levies on the industry.
“ALTON considers it expedient for the telecommunications sector to undergo periodic cost adjustments through the commission’s intervention in order to minimise the impact of the challenging economic issues faced by our members,” it said.
“Upward review of the price determination for voice and data and SMS. Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.
“For data services, we wish to request that the commission implements the recommendations in the August 2020 KPMG report on the determination of cost-based pricing for wholesale and retail broadband service in Nigeria. Excerpts from the report are attached and marked ‘Annexure 2’ to provide a further illustration,” it added.
When he spoke unanimously on national tv Toriola said “We at MTN believe we need adjustment of about 100 per cent, I think the industry is pretty much aligned because we are all experiencing the same headwinds. Now, the government is very sensitive to squeezing consumers’ wallets with the pressures that have come from inflation and currency devaluation on consumers.
Toriola was very optimistic that the government of Nigeria will accede to the proposed 100% tariff increase eventually all things being equal.
Toriola carried the cross and burden of the embattled sector when he spoke on national television last week Friday.
While bragging that telecommunications had impacted positively on the economy (he was right anyway) he is worried that not much encouragement has come from government.
But that is where he miscalculated.
Although he felt justified that a tariff increase is sine quanon,there are several untapped layers of this question.
“So, I’m not sure they will give us 100 per cent, but I am optimistic they will give us something substantial and maybe progressively over the course of the year we can have smaller adjustments that will help us to get back to where we need to be,” Toriola said.
The MTN CEO said that almost every other sector in the country, including aviation and power have increased tariffs except the telecoms industry.
According to him, all the bodies that look into the statistics of the telecoms industry globally have disclosed that Nigeria has probably the second or third lowest tariffs in the world on data as well as on voice.
If Toriola and his strange bedfellows return to the Floor price determination of 2016 and 2020 and the various studies carried out in that regard ,he will see a number of windows that could address the nightmare and save both the regulator Nigerian Communications Commission (NCC) and the rest of us these agonizing times.
Strangely,non of the operators has hit the maximum threshold of 50 naira per minute because of the competition to outdo each other by playing to the gallery in order to play smart and scurry subscribers attentions.
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