TELECOS ARE NOT FATHER CHRISTMAS, ADEBAYO SHITTU DEFENDS 50% TARIFF HIKE
Written by eaglefmn on February 1, 2025
Former Minister of Communications, Dr. Adebayo Shittu has thrown his weight behind the Nigerian Communications Commission (NCC) for its proposed 50% tariff increase for telecoms operators in the country, calling it a necessity for economical progression.
The Ex-Minister, who had an exclusive interview on Eagle 102.5 FM’s current affairs program, Frontline, said the proposed tariff hike should never be a debate judging by the economical constraint facing all sectors.
According to Shittu, it is uncharitable to expect the Telecom companies whose aim is to provide communication service, making life comfortable for Nigerians while also making profit to keep to a stable price for more than ten years while other sectors have quadruple theirs.
“Nigeria is a very difficult country and a lot of time Nigerians don’t want to listen to the truth. The truth is always very bitter. When I was in office, I was scandalized by people who expected the telecom companies to provide free service”
“I have to remind a lot of people that there was a time when we didn’t have enough telecommunication system in Nigeria. To use phone at that time, you have to go to certain places when you pay up to 50 naira.
“When telecom companies were invited, we didn’t invite them to provide father Christmas service, we invited them to come and do business to make profit while making life more comfortable for Nigerians, particularly in the area of communication”, He stated.
He added that the telecom companies have provided service with a stable price in Nigeria while in neighboring countries like Benin and far North Algeria pays more for this same service.
“As at the time we were paying N4.00 for every SMS, in Benin Republic beside us pays what is equivalate to N50.00 while Algeria pays N150.00.
“The removal of fuel subsidy and other policies have caused a lot of shifts in the country; inflation ad hike in prices of commodities, so do we expect the telecoms to collapse? If they are not able to maintain their service, they will simply pack up and Nigeria will return to point zero, when we do not have telecom service”
“For me, the fifty percent increase is a necessity if we want the telecos to remain afloat and be able to make profit. Over the last 10 years or so, their prices have been very stable. Which other area or sector have that kind of stability? He queried.
The former Minister also gave reasons like construction of mast, electricity and protection of mast and other equipment are the reasons Nigerians should consider before the outburst.
“We forget that they will constrict mast, which was over 40 million Naira, while I was in office as Minister. Now, it will be more than a 100 million naira, because of that telecoms find it difficult to construct extra mast in area where telecoms companies are very poor and they do not have electricity to sustain their services and equipment, they have to buy generator sets and also timely fueling. More importantly, Government is meant to provide them with security for their facilities but because we lack proper security system in the country, they will provide theirs themselves and all these things cost money.”
Reacting to the proposed February 4 industrial action proposed by the Labour union, Shittu tagged it an unnecessary.
Recall that Nigeria Labour Congress has proposed a five per cent increase in telecom tariff hike rejecting the 50 per cent approved by the Nigerian Communications Commission.
In a recent update, NLC on Friday 31ST January, 2025 also informed its affiliate unions and state councils to ensure total mobilization of workers and allies ahead of the February 4, nationwide mass protest against the planned tariffs hike.
However, Shittu urged the raging NLC to refrain from protesting against the tariff hike if they cannot do the same to other sector, especially the inflating cost of food.
“With due respect to the NLC, There is no point wanting your members to be overly active all of the time whether there is sufficient rationale for going on such strike or not, why can’t they go to the market to protest the cost of foods? Why try to hold service companies to ransom for what others do? These companies paid billions to obtain license, this is not charity”.
Meanwhile, Shittu also called on the present administration to fashion policies that will bring relief to Nigerians.