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Tariff Hike: Telcos Begin Load Shedding To Cut Operational Costs
Telecom operators in Nigeria have begun to implement load shedding in response to the Nigerian Communications Commission’s (NCC) reluctance to address their demands for a tariff hike.
Load shedding is a deliberate shutdown of telecom services in a part or parts, generally to prevent the failure of the entire system when the demand strains the capacity of the system.
Though operators did not confirm the development, but there is increased prioritization of network service in high-revenue areas, explaining why the service quality of network operators may be good in certain areas and poor in others.
Recall that the operators, citing the rising cost of operations, including the increased prices of diesel, infrastructure maintenance, and a depreciating naira, recently called on the NCC to approve a tariff increase to help mitigate their financial burdens.
For instance, MTN, with a subscriber base of 79.7 million as of December 2023, reported a first loss after tax of N137 billion since its 2019 listing on the Nigerian Stock Exchange in 2023. The telco incurred FX losses of N740 billion ($815.79 million at N907.1/$).
Airtel Africa, which had 50.9 million subscribers in Nigeria as of March 2024, reported a loss after tax of $89 million for its full year ended March 2024, primarily due to FX headwinds in Nigeria and Malawi.
It lost $1.26 billion to derivative and FX exposures, with $770 million attributed to the naira’s devaluation.
This has led to dwindled investment in the telecoms sector, Carl Cruz, chief executive officer of Airtel Nigeria, stated, adding that, “The devaluation of the Naira moving from N420/ dollar to N760/dollar in a month’s time, to about N1500/dollar today, had indeed affected telecoms industry who rely heavily on importation of infrastructure to grow the sector.’
In the same vein, Karl Toriola, CEO, MTN Nigeria, said operators are reluctant to invest, simply because of the high operating cost and the devaluation of naira, among other issues that have marred the growth of the sector.
According to him, “the telecoms sector in Nigeria is now in an intensive care unit (ICU) gasping for breath, while calling on the government to intervene.
The sector is facing a lot of challenges of which if urgent action is not taken, it will dry up. The truth is that investors are not going to come to invest in the sector if the fundamental issues are not addressed. To rescue the sector from collapsing, there is a need to increase prices of telecom services.”
Despite repeated pleas, the regulatory body has remained silent on the issue, causing frustration and uncertainty among industry players.
The situation has escalated, with telecom operators warning that if the tariff hike is not granted, they may be forced to adopt load shedding—a strategy that would involve rationing network availability during certain periods.
News
PHOTOS Of Prisoners Who Escaped Borno Prison And Those Recaptured
By Mario Deepromoter
Nigerian Correctional Service on Sunday disclosed that about 281 inmates escaped from Maiduguri Medium Security Custodial Centre following severe flooding in the capital city.
NCoS spokesperson, Umar Abubakar, said the agency had alerted the Nigerian Immigration Service, and Nigeria Police Force among other security agencies to help recapture the fleeing inmates.
“Every security agency in the country has been notified and they are on alert to help track down the fleeing inmates wherever they may be. With their help, we will capture them and return them to our custodial centre,” Umar said.
In a statement on Sunday, he said of the 281 fleeing inmates, seven had already been recaptured and returned to the facility.
“The Nigerian Correctional Service has observed the flooding currently being experienced in Maiduguri, Borno State, and its environment.
The unfortunate incident has left scars, bringing down the walls of the correctional facilities, including the Medium Security Custodial Centre in Maiduguri as well as the staff quarters in the city.
“Upon the evacuation of inmates by officers of the service, with support from sister security agencies to a safe and secure facility, 281 inmates were observed to be missing.
Presently, a total of seven inmates have been recaptured and returned to custody, while efforts are on the ground to track down the rest and bring them back to safe custody,” the statement read in part.
Abubakar further stated that details of the fleeing inmates had been made available to the public while noting that efforts were underway to track them.
“However, it is important to note that the service is in the custody of their details, including their biometrics, which are being made available to the public. The service is working in synergy with other security agencies as both covert and overt deployments have been activated to locate them. While this effort is ongoing, the public is assured that the incident does not impede or affect public safety,” the statement added.
Recall that the flood affected many parts of Maiduguri, leading to the displacement of over 300,000 residents and the deaths of over 30 people, including children.
Meanwhile, Borno State Governor, Babagana Zulum, on Saturday said he was “seriously worried” that jailed Boko Haram terrorists might have escaped from the prison facility.
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SEE new price of petrol across all 36 states
By Mario Deepromoter
Despite the counter accusations by both Dangote Refinery and NNPCL over prices, the price list of petrol has emerged online.
According to reports, this is because NNPCL bought petrol at a higher price from Dangote Refinery on Sunday.
NNPCL also mentioned that Dangote Refinery sold the petrol in US Dollars, not naira, against the federal government’s directive.
However, Dangote Refinery will sell its petrol in naira starting in October.
According to a breakdown from NNPCL, Dangote Refinery sold petrol to NNPCL at N898.78 per litre.
NNPCL paid Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) fee of N8.99, inspection fee of N0.97, a distribution cost in Lagos of N15, margin N26.48.
NNPCL’s statement added that the estimated pump price in:
Lagos will be N950.22
Sokoto State N999.22
Kano State N999.22
Borno State N1,019.22
Kaduna N999.22
FCT N992.22
Oyo State N960.22
Lagos State N950.22
Rivers State N980.00
Imo State N980.22
An analysis of the chart showed that except from Lagos State, other states of the federation will be paying higher because of distribution costs.
The distance from Dangote Refinery and NNPCL‘s depot in Lagos State to other states of the country majorly would determine the price differences.
The report also showed that the six geo-political zones would be paying differently.
The North East states would be paying the highest per liter from N1,019.22, followed by North West states from N999.22, followed by North Central states from N992.22, followed by South East states from N980.22, South South states from N980.22 and South West states paying the least from N960.22, except Lagos State paying from N950.22.
At the time of filing this report, the presidency is yet to speak on the latest development.
News
Rivers 2027: Ogoni powerful men snub Fubara, throw weight behind Wike
By Mario Deepromoter
Political heavyweights from the Ogoni and Oyigbo zones have formally withdrawn their support for Rivers Governor Siminalayi Fubara ahead of the 2027 general elections.
The leaders have dumped Fubara and lace their boots with the action packed Minister of the Federal Capital Territory (FCT), Nyesom Wike.
The leaders gathered on Saturday in Nonwa, Tai Local Government Area, at an event tagged “Ogoni, Oyigbo People’s Assembly.”
The assembly, which focused on fostering unity between the two ethnic zones, was heavily attended by politicians loyal to Wike, who remains locked in a bitter political feud with Fubara, his estranged protégé.
Prominent personalities, including Senators Barinada Mpigi and Magnus Abe, Ambassador Desmond Akawor, and Chief Victor Giadom, attended the meeting.
The group emphasized that after years of marginalization, it was time for Ogoni and Oyigbo to produce the next governor of Rivers State.
Speaking on behalf of the assembly, Senator Mpigi declared, “The Ogoni and Oyigbo Peoples Assembly, a multi-political convergence of five Local Government Areas within the Rivers South-East Senatorial District, met today to reaffirm their support for the President Bola Tinubu-led administration and pledged total loyalty to the former Governor of Rivers State and current Minister of FCT, Chief Nyesom Wike.
“We also reiterate the obvious fact that the senatorial district’s upland is due for a governor and should produce the next governor of Rivers State come 2027.”
Tensions between Wike and Governor Fubara have been mounting, with Wike publicly withdrawing his support for his former ally.
Wike, who was instrumental in Fubara’s rise to power, has accused the governor of straying from their shared vision for the state.
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