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  • Photo credit: JC Communicationz

    Unless, of course, you live under a rock, haven’t touched your devices today, or are completely drowning in the news of Trump’s endless Presidential orders, you must have heard by now that the Nigerian Communications Commission (NCC) has made an announcement saying it’ll okay an increase in tariff rates charged by telecommunication companies in the country.

    You might have also heard that there are plans to sue the federal government over the increment. We tracked the entire story so you don’t have to.

    How it started

    Since 2024, the Association of Licensed Telecom Operators Of Nigeria (ALTON) and the Association of Telecommunication Companies Of Nigeria (ATCON)  have begged the Nigerian government to allow it to increase the prices of their services. To plead their case, the two associations pointed out that the telecom industry was the only industry that had not experienced any price increment since 2013 (12 years) and that a price review was not only long overdue but was compulsory to avoid the collapse of the industry.

    ALTON and ATCON’s request was made in the first quarter of 2024 but it was not granted–the Nigerian Communications Commission (NCC) told them it would conduct a cost-based study to decide if it would approve their request but as the year drew to a close in December, the telco operators showed they were not backing down by announcing they might suspend their services in some parts of the country if their demands are not met.

    A brief back-and-forth

    The telco operators asked for a 100% increase but the NCC said it was not going to approve that because it would weigh down on Nigerians who are already seeing immense shege due to the crazy inflation rates, hike in fuel prices, and other issues in the country but the companies weren’t having it because they too were suffering from the same issues.

    On Wednesday, January 15, The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, said again that while the government was considering the request from the telcos, there was no way it would approve a ten per cent increase but would instead keep it within the 30 to 60% range. This time, the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS-Nigeria) said it wasn’t going to happen on their watch.

    Increment announced

    On Monday, January 20, the NCC announced it had decided to increase the tariff by 50%. The announcement came in the form of a statement signed by NCC’s Director of Public Affairs, Reuben Muoka, and we read it so you don’t have to.

    In the statement, the NCC basically says that it landed on this decision after “taking into account ongoing industry reforms that will positively influence sustainability.” The commission also reminded Nigerians that tariff rates had not been increased since 2013, even though the cost of providing the services has since skyrocketed and that the increment is compulsory in order for the telecommunication operators to operate in a way that’ll benefit the customers.

    The NCC did not state a specific date when the tariff hike is expected to start, but it instructed telecommunication companies in the country to first “educate and inform the public about the new rates.” This means that your telecom service provider will let you know before they implement the new rates.

    ATCON threatens to sue FG

    Barely 24 hours after the NCC announced the 50% tariff hike, another group, the National Association of Telecoms Subscribers (NATCOMS) also announced it was going to drag the commission to court for the hike.

    Explaining their decision to sue, the association’s president, Deolu Ogunbanjo, told Channels TV that the move was totally unfair to Nigerians. “… It is so much for subscribers to bear. Already, we are grappling with a lot of things that are surrounding the business climate here—fuel cost, electricity cost, and all that—you are now looking at telcos asking for 100%, and  NCC now is granting them 50%. It is a no-no,” he said.

    Ogunbanjo also explained that NATCOMS is understanding of the need for a price increment and that it had propose a 5 to 10% increment to the NCC but was shocked to see that the commission had ignored subscribers and approved 50% increase instead.

    Does ATCON have a chance at winning?

    We actually can’t determine whether or not the association will win its case mostly because the NCC is empowered by section 108 of the Nigerian Communications Act (NCA) 2003 to approve tariff charges by telecommunication operators in the country.

    We will keep an eye out and tell you first when we hear anything.

    News is boring, but we make it fun. Subscribe to The Big Daily to be the first to know the day’s biggest news. 

  • Photo credit: JC Communicationz

    We are not sure if this is to be categorised as a high or low-quality problem, but some Nigerians might be in for the mother of all modern inconvenience– a telecommunication shutdown. 

    On December 31, just as Nigerians said goodbye to  2024, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) said that they might suspend their services in some regions of the country if the Nigerian Communications Commission (NCC) does not okay their demand for a tariff increase.

    In a statement signed by ALTON Chairman Gbenga Adebayo, the association said that Nigeria’s telecom industry is hanging by a thread and would need to increase the current tariff as a matter of survival as they currently suffer high energy costs, rising inflation, high cost of operation, unstable exchange rates, and other issues.

    The ALTON chairman emphasised that telecom operators need to, as a matter of survival, raise the tariff to reflect the unfortunate impact of the Nigerian economy on their businesses but have been able to do so due to the NCC’s refusal and have experienced stagnancy as a result.

    Although they were not specific on time and location, ALTON said it’d be cutting telecommunication services in certain regions of the country and at certain times. In the words of its chairman: “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…”

    How will a telecommunications shutdown affect you?

    Actually, the question should be, “How will it not affect you?” because a telecommunications shutdown is on the same level (if not worse) as an electricity blackout. If telcos go ahead with their plan to suspend their services in some regions of the country, this means that people in those regions will literally be catapulted back to the Stone Age, as they will only be able to use their devices at certain times of the day. Imagine using your phone only when the rationing allows you to.

    On a larger scale, a suspension of telecom services would be potentially catastrophic for Nigeria, as essential sectors like healthcare, education, security, and commerce would be mad  stranded without those services.

    What does a tariff increase mean for you?

    Telecom operators have explained how the current tariff weighs heavily on their operations, and Nigerians will definitely be singing the same song if the NCC agrees to a tariff increment.

    Currently, the tariff stands at ₦11.00 per minute for voice calls,  ₦4.00 for Short Message Services (SMS), and  ₦1,000 for one GB data bundle. If the tariff increases, customers will be charged  ₦15.40 per minute for voice calls,  ₦5.60 for SMS, and  ₦1,400 for one GB data bundle.

    So, in addition to paying more for almost everything, Nigerians will have to dig into their pockets for extra cash to afford services as essential as telecom services.

    What is the solution to this problem?

    The obvious solution here might seem to be for telecom operators and the NCC to come to an agreement, but according to all that ALTON has said, the only acceptable agreement in their books is a tariff increase, which unfortunately brings us back to the issue of being forced to pay more.

    The only real solution is the not-so-obvious one—an economic turnaround. Nigeria is currently experiencing what has been termed its worst economic crisis on record, and its impact has been felt on just about everything in the country.

    From an increase in the cost of air and road travel to an increase in food prices and more, people in the country have barely caught a break, and neither has its industries. In 2023, following the impact of fuel subsidy removal and bold monetary policies, several companies like  Bolt Food, Procter & Gamble, GlaxoSmithKline (which had operated in the country since 1972), and Jumia Food all left the country for similar reasons. 

    Also, in 2023 alone, about 767 manufacturing companies in Nigeria had to shut down their operations due to the same old culprit– the economic crisis. Now, telecom operators are asking for a tariff review, citing the same issues.

    From all angles, there hardly seems to be a solution or an end in sight to the current telecom threat. As it stands, the NCC might have to finally agree to the tariff hike and Nigerians might have to pay extra for telecom services.

  • If there’s one thing the Buhari government knows how to do, it’s to keep taking without giving enough back. That’s exactly how he’s driven Nigeria’s debt profile from ₦12.1 trillion in 2015 to ₦41.6 trillion in 2022. 

    For his next trick, he’s raising taxes on the telecommunications industry that’s going to make life a bit harder for everyone. 

    Buhari needs more of your tax

    How’s he gonna do it?

    The Minister of Finance Budget and National Planning, Zainab Ahmed, announced on August 4th 2022 that a 5% inclusive excise duty is about to fall on telecom services in Nigeria. 

    Buhari needs more of your tax

    This tax didn’t just come out of nowhere. In fact, it’s in the Finance Act of 2020 but remained dormant like a tumour just cooking to fuck up your life when you least expect it.

    Ultimately, the decision to fix the rate on excise duties was on President Always Take, and he’d been taking his time to do that, until now.

    Why’s Buhari doing this?

    Buhari needs more of your tax

    The truth is Nigeria is broke. The country’s income isn’t even enough to take care of settling its debt, not to talk of other things you need money to run. 

    Like TGIF

    And since Nigeria’s oil revenue isn’t vomiting nearly enough money, the government is looking into non-oil sectors to pull their weight. That’s why the president is turning to the telecom sector to squeeze some more revenue out of it for the government to spend.

    ALSO READ: What Nigeria Can Learn from Kenya About Cutting Politicians’ Salaries

    But how does this affect your pocket?

    When the government announced the imminent implementation of the additional 5% tax, operators didn’t waste any time in passing it on to their customers. The Chairman of the Association of Licensed Telecom Owners of Nigeria (ALTON), Gbenga Adebayo, said operators already pay too many taxes to the government and can’t shoulder another one. And what’s even crazier is that this tax is rare in a sector like telecom.

    Excise duties are indirect taxes placed on the manufacture of non-essential, potentially harmful products like alcohol and tobacco. You can call it a “sin tax” in the sense that it exists to discourage the consumption of such products.

    YOLO

    But in this case, Buhari has extended the sin tax to something as essential as talking to your family and friends as this will affect the prices of things like recharge cards and vouchers. Why would he do this? Maybe because he hates your enjoyment. Or he needs all the revenue he can get to send more exotic cars across the border to his first cousins in Niger Republic.

    Buhari needs more of your tax

    Is anyone fighting this?

    Telecom operators aren’t happy about the excise duty, but they’re passing the burden of it to their customers like it’s an STD, so it may be naive to expect them to put up a spirited fight. But someone else has offered to do that. 

    Resident terrorist sympathiser who’s also the Minister of Communications and Digital Economy, Isa Pantami, is a surprise objector to the tax.

    The minister said more taxes on the telecom sector makes no sense as it’s already one of the government’s hottest honeypots. 

    Buhari needs more of your tax

    Pantami feels so strongly about the tax that he’s vowed to fight it by any means necessary so it doesn’t destroy the digital economy sector.

    What’s the damage here?

    Only a handful of countries place excise duty on telecom services. And the danger is that consumption levels may drop because Nigerians are already seeing shege with the state of the economy. If demand drops, the revenue generated from the telecom sector may start to shrink and ultimately worsen Nigeria’s revenue headache.

    Right now, it’s still unclear when full implementation of the excise tax will commence, but if it does, communication is about to get more expensive for you.

    ALSO READ: Buhari Is Using Exotic Cars to Fight Insecurity in Niger Republic

  • Services in Nigeria are designed to frustrate you, from the banking to the transportation services and even the telecommunications services.

    Where do I even start from? Is it the drop calls, or the numerous unsolicited messages that pop up at that time you’re waiting for a bank alert? What of the shenanigans of slow and retarded network that can only function at a particular spot in your house even though a mast is so nearby?

    There’s so much to complain about but here are seven things that top the list:

    1) How data is supposed to last for a month-but doesn’t

    This is the king of all lies that we’ve been sold. No matter the data bundle you buy, on whatever network, it is just never enough. If you buy monthly data, prepare yourself for a resubscription within two weeks. Yeah, I don’t know how they do it too.

    So baffled

    2) The promo’s that we are not sure anyone actually wins

    So, you hear that someone will be rewarded with a car, house, a trip to Dubai and more, if they are loyal customers. But, do people actually win those things? Forget those photo ops we see abeg, I won’t believe it until I win a prize myself.

    3) The extra credit/data that is supposed to last a week (or more) but disappears the first time you use it

    These bonuses by Nigerian telcos have mastered the vanishing act. You will receive a message that you’ve been gifted with extra talk time or data for a few weeks, only to have it go to zero balance the first time you use it.

    Well, I wasn’t expecting anything, so it’s all good.

    4) How they tell you its your fault that something went wrong with network

    Remember those drop calls I mentioned? Yeah, this and text messages that remain unsent for days are some of the reasons people call customer care, only for them to hear; “But everything is alright from our end. Are you sure you hit send?”

    5) How they make you buy airtime/data multiple times because of “network failure”

    Somehow, this happens when you want to recharge through your bank app. If it didn’t work the first time, please don’t do it again. At least wait for 24 hours before you attempt to recharge again, this will give you peace of mind.

    6) Customer care agents who leave you hanging with a promise to resolve complaints by calling/texting you back within a day

    This is a lie from the pit of hell. They will not call you. I repeat, they will not call you. In fact, you will be cut off while you are speaking with one and then the other agent you dialed within seconds of blind rage will do the same thing. Until you give up and break your SIM card.

    7) How each telco promises to be better than the other

    They deceived you to port over to their services until you realize you just roped yourself into something much worse. There’s no good anywhere, just manage your bad network like that because they are all the same.