The Nigerian telcos got a great new year present even as the Nigeria Labour Congress condemned the 50% hike “The Nigeria Labour Congress (NLC) has fiercely condemned the recent 50% tariff hike approved by the Nigerian Communications Commission (NCC) for telecommunications operators, calling it an “assault on the welfare of Nigerians.”’
But no matter how you see it, the telcos deserve this increase because those equipment are not fabricated in Umuahia, Sokoto, Jos or Ibadan. Yes, they are imported into Nigeria with USD dollars, and not Naira. With the fading of Naira, this recalibration makes sense! Sure, expect court cases as many will disagree with me.
But this price hike will not end with the telcos; expect online streamers, cinemas, and everyone to “top and collect”, because that is where things are right now. Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) is aligned that prices should increase, even though it expects the companies to offer improved services. Lol.
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NCC which sees the operating logs and books of these companies saw the increase as a ‘The NCC, in its defense, described the hike as a “rationalized adjustment” meant to address the surging operational costs faced by telecom operators due to inflation, foreign exchange volatility, and insecurity. It argued that the 50% increase was more measured than the over 100% initially proposed by operators.’
And there lies the confession I was expecting because a bird which flies from the ground only to perch on the ant-hill is still very much on the ground. The federal government of Nigeria is no longer absorbing subsidy costs, foreign exchange costs, etc, but that does not mean those costs have gone. Do you know what happened? The costs moved from the public purses to corporate purses, and after adjustments, those companies will ask you to pay up!
Yes, these costs cannot be eliminated by moving them from the government to companies. You only take them out by providing practical alternatives or substitutes. Otherwise, nothing is changing. In short, it is even more effective if the government absorbs these costs as it could be more optimized unlike where companies are applying the rules in any way they like. As the debate continues, MTN, Glo, Airtel, etc don top and collect? And if you sell things, you dey top and collect also. Now, you know who is paying for subsidies!
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