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update: High Cost of Diesel : Telcos demand 40% increase in voice, SMS, data tariffs; NCC, expert reacts
….Free web operators threaten national security — Experts
There are indications that telecommunications operators, telcos, in the country are planning to raise tariffs on voice calls and data by as much as 40 per cent.
Reliable sources from the operators who confirmed the plans to Newsthumb said it was due to high cost of diesel to operate their businesses, incessant harassments and frivolous taxes and levies imposed on them by all manner of agencies from the three tiers of government.
The telcos who spoke to correspondence on the issue said the issue is being handled by their umbrella body, the Association of Licensed Telecoms Operators of Nigeria, ALTON.
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Vanguard reliably gathered that ALTON has already sent a letter to the Nigerian Communications Commission, NCC, seeking upward review of tariffs by 40 percent.
If approved, the services that will be affected include voice calls, short message services, SMS, and data services.
It means that the telcos want the average 11k per second, N8.95 per minute current cost of voice calls jerked up to N12.53 while short message services will move from N4.00 to N5. 61.
This also means that a subscriber who spends 30 minutes on a call will have to cough out approximately N376 while those who spend one hour will have to pay at least N752.
ALTON’s letter to NCC highlighted a few operational issues which the regulator should consider to approve the request.
They include rising cost of business operations due to high cost of diesel, and other energy sources, recent introduction of excise duty of five per cent on telecoms services, and increased burden of multiple taxes and levies on the industry. The telcos say these increments have jerked their operating expenses by over 35 per cent.
However, a reliable source at the NCC said as much as the Commission sympathises with the conditions which have increased operating costs, tariff increment is not done with sentiment.
The source said: “I am aware that the ALTON sent in a letter with a demand for increment in tariffs, but there is a process which is rigorously taken before increments are made on tariff.
“The current tariff they are currently operating with went through that rigour. So, even if their demand will be considered, it will also take a process which is not going to encourage an instant implementation” he added.
Part of ALTON’s letter sighted by Vanguard read: “As the commission may be aware, the power sector under the supervision of its Nigerian Electricity Regulatory Commission in November 2020 undertook a review of electricity tariffs to cater for the economic headwinds.
“In view of the foregoing, ALTON considers it expedient for the telecommunications sector to undergo periodic cost adjustments through the commission’s intervention to minimise the impact of the challenging economic issues faced by our members.
“Details are: 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 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.
“With respect to voice and SMS cost, ALTON respectfully requests the commission to consider a mark-up approach to address the upward price adjustment desirable for the industry. We have enclosed herein and marked Annexure 1 of our proposal in that regard.
“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.
“In implementing the said recommendations, however, we recommend that the 40 per cent increase in the cost of doing business be factored in to arrive at a cost price per Gigabyte in view of the current economic situation.”
The group also highlighted other demands to the commission such as to explore other penalties for operators other than punitive monetary sanctions, extend the payment timeline of relevant regulatory levies and fees, prevail on the Federal Government to sign the executive order declaring telecoms infrastructure as critical national infrastructure to mitigate cost spent replacing damaged and stolen infrastructures, among others.
It added that the Mobile (Voice) Termination Rate (MTR) for voice, administrative data floor price and cost of SMS as reflected in extant instruments should also be increased.
The ALTON letter added: “For large operators, a new interim MTR of N5.46 from N3.90 reflecting 40 per cent increase in the cost of business. “For small operators, the new interim MTR of N6.58 from N4.70 reflects a 40 per cent increase in the cost of business.”
A reliable source and senior official of ALTON who also confirmed the letter, said: “Although we did not intend that this will be a media issue, I can confirm to you that we sent a letter to the NCC requesting upward review of tariffs.
“But this shouldn’t come to you as a surprise. We have always intimated that this is the only way to go, considering prevailing circumstances.
“Recall that while approaching the Federal Government to intervene on indiscriminate clamp down on our facilities, particularly the recent one in Kogi over frivolous taxes and levies by all manner of agencies, we did warn that we may be forced to increase tariffs.
“What has happened now is that as law-abiding citizens and responsible corporate entities, we are going about it the appropriate, responsible and legal way.
“For us to serve you well, we must first of all be in business,” he added.Expert reacts.
For the Executive Director, Paradigm Initiatives Nigeria, Mr Gbenga Sesan, said: “The holy alliance the operators entered with ministry of communications and digital economy on the bad NIN-SIM linkage policy has come to haunt them.
“The effect of that bad policy is what they are reacting to. They should have stood their ground that the policy was not right, instead of compromising their knowledge.
“If they increase prices, people will adjust. Already we are used to telephone communications. What will suffer is the aggregate economy, which is why we didn’t want that evil policy in the first place.
“The Over the top operators will now gain ground because people will call more on whatsapp and other Voice over internet protocol platforms than normal voice calls.
“That is where the revenue that was supposed to accrue for government will go to people who do not have physical presence in our economy.”
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BREAKING: Ex-NIWA Boss Oyebamiji Clinches Osun APC Governorship Ticket
The immediate past Managing Director of the National Inland Waterways Authority, Bola Oyebamiji, on Saturday emerged as the consensus candidate of the All Progressives Congress for the forthcoming Osun State governorship election.
Oyebamiji’s emergence followed a motion moved by two governorship aspirants, Kunle Adegoke (SAN) and Senator Babajide Omoworare, at the primary election venue located within the premises of Ebunoluwa Group of Schools, Osogbo.
The Chairman of the APC governorship primary committee and Governor of Edo State, Monday Okpebholo, thereafter subjected the motion to a voice vote, which received overwhelming support from party members present at the primary.
Okpebholo subsequently declared, “By the power conferred on me, I present to you Bola Oyebamiji, as the governorship candidate of our party.”
Newsthumb earlier reported that the APC governorship primary in Osun State commenced in Osogbo, the state capital, with the arrival of the committee chairman, Monday Okpebholo, who noted that the candidate will emerge by affirmation.
APC’s gov candidate Oyebamiji pledges to reposition Osun
He arrived at the venue alongside the co-chairman of the committee, Governor Lucky Aiyedatiwa of Ondo State, and other members of the governorship primary committee, including Governor Abdullahi Sule of Nasarawa State, Dr Obafemi Hamzat, who represented the Lagos State Governor, and former Kogi State Governor, Yahaya Bello.
Earlier on Tuesday, 1660 delegates that would elect the APC candidate in the December 13 governorship primary of the party emerged.
There were also clear indications that the seven APC governorship aspirants in the state had stepped down to back a consensus flagbearer after a late-night meeting with President Bola Tinubu at the State House, Abuja, on Wednesday.
A former APC National Secretary, Senator Iyiola Omisore, on Wednesday, speaking on a TVC News programme, Politics Tonight, declared his support for the party’s arrangement to choose a consensus candidate for the 2026 Osun State governorship election.
Omisore, who was among seven aspirants disqualified by the APC Screening Committee for alleged violations of party guidelines and electoral provisions, said he accepted the decision following guidance from President Bola Tinubu.
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BREAKING: Supreme Court Rejects FG Pardon, Upholds Maryam Sanda’s Death Sentence
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The Supreme Court has overridden the pardon granted by President Bola Tinubu to an Abuja-based house wife, Maryam Sanda, who was in 2020 sentenced to death by hanging for killing her husband, Bilyaminu Bello, during a domestic dispute.
President Tinubu had reduced Sanda’s sentence to 12 years imprisonment on compassionate ground.
But in a judgment a on Friday, the Supreme Court, in a split decision of four-to-one, affirmed the death sentence handed Sanda by the Court of Appeal, Abuja which upheld the decision of a HIgh Court of the Federal Capital Territory (FCT), sentencing her to death by hanging.
The Apex Court resolved all the issues raised in the appeal she filed against her and dismissed the appeal for being without merit.
Court orders woman accused of killing husband to enter defence
Justice Moore Adumein held in the lead judgment, which he personally delivered, that the prosecution proved the case beyond reasonable doubt as required, adding that the Court of Appeal was right to have affirmed the judgement of the trial court.
Justice Adumein held that it was wrong for the Executive to seek to exercise its power of pardon over a case of culpable homicide, in respect of which an appeal was pending.
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He Was Visibly Upset’: Tinubu Orders Clearance of N1.5tr Contractors’ Debt — Onanuga
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….Inter-ministerial panel to fix payment delay
President Bola Ahmed Tinubu has directed the payment of N1.5 trillion owed to local contractors.
He raised a multi-ministerial panel to provide a permanent funding solution during yesterday’s Federal Executive Council (FEC) meeting.
Presidential spokesman Bayo Onanuga said the President was ‘visibly upset’ about the situation.
Onanuga said: “He made it very clear he was not happy and wants a one-stop solution.
“The President expressed grave displeasure about the fact that contractors are being owed.”
According to him, the Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, briefed the Council on the magnitude of outstanding obligations, prompting the President’s directive to constitute a multi-ministerial team to clear the backlog and come up with a funding plan.
Members of the committee are: Minister of Finance and Coordinating Minister of the Economy Wale Edun, Budget and Economic Planning Minister Atiku Bagudu, Works Minister Dave Umahi, Education Minister Olatunji Alausa, Housing Minister Ahmed Dangiwa and Marine and Blue Economy Minister Gboyega Oyetola.
Others are the Director-General of the Budget Office of the Federation Tanimu Yakubu, and the Federal Inland Revenue Service (FIRS) Executive Chairman, Dr. Zacch Adedeji.
Onanuga added: “All of them are expected to sit down, develop a plan as a committee, and then go to the President to tell him the solution they have found in allocating funds to pay contractors.”
He explained that the President was determined to “find the money and fix the problem,” even hinting that the government could borrow to settle verified obligations if necessary.
The development followed weeks of pressure from contractors, who have repeatedly protested delays in payment of certified arrears.
In September, the All Indigenous Contractors Association of Nigeria (AICAN) claimed during demonstrations in Abuja and at the National Assembly that more than N4 trillion was outstanding for 2024 capital projects.
The Ministry of Works had previously acknowledged a significant backlog and launched a verification exercise in January last year to account for roughly N1.5 trillion in unpaid federal highway contracts.
The issue has been further complicated by overlapping budget cycles, with 2024 capital components rolling into 2025.
Last month, the National Assembly approved an additional N1.15 trillion in domestic borrowing to help cover a widened 2025 deficit.
The government also tapped into the international markets with a $2.35 billion Eurobond to bolster its financing needs.
Also on December 3, members of the AICAN got an audience with Edun on the second day of their protest at the Ministry of Finance.
The protesters demanded payment for the contracts they executed for the Federal Government in 2024.
Also yesterday, Umahi expressed the Federal Government’s resolve to engage reputable indigenous contractors in the execution of critical infrastructural projects.
He dropped the hint during an inspection of the reconstruction of the Abuja-Keffi Highway.
The minister expressed satisfaction over the quality of the works on the road, which was awarded for reconstruction in October to JRB Construction Company Limited, an indigenous contractor.
The Abuja-Keffi dual carriageway project is a critical infrastructure development that aims to improve road connectivity and reduce travel time to Nasarawa State where most of the federal civil servants working in Abuja reside.
The project is expected to be completed in March.
The minister said: “This is the kind of organisation that will grow this country. Be assured that Mr. President is aware of what you are doing. And you are going to be paid to the last kobo.”
Umahi reiterated the government’s commitment to empowering indigenous companies.
He added: “We will continue to support and empower indigenous companies that have the capacity to deliver high-standard projects and contribute to the growth and development of the country.
“The recognition of JRB Construction Company Limited is a testament to the company’s exceptional performance and commitment to delivering high-standard projects.
“The company’s reputation as one of the top indigenous construction companies in Nigeria has been reinforced, and it is expected to continue to play a critical role in the development of infrastructure in the country.”
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