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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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The Great Leap Forward: Tinubu Orders Immediate Funding for Regional Development Commissions
President Bola Tinubu has directed the Secretary to the Government of the Federation, George Akume, to ensure the release of all funds approved for the regional commissions.
Tinubu gave the directive on Monday at the North Central Development Commission Summit, themed “The Great Leap Forward: A 20-Year Economic Infrastructure and Social Development Plan for the North Central Region.”
Akume, who represented the President at the summit, said the creation of regional development commissions was part of the administration’s Renewed Hope Agenda to accelerate development across the country.
“Government will continue to give the NCDC and other Regional Development Commissions the political and financial backing to embark on key projects that will unlock the economic and industrial potentials of the nation.
“I therefore direct the Secretary to the Government of the Federation to ensure that all funds accruable to the Commissions are released as and when due,” he said.
The President, however, said the commissions should not rely solely on government funding, urging them to explore public-private partnerships, donor funding and development financing for transformative projects.
He said the commissions were expected to focus on major projects in rail, air transportation, industrialisation, security, investment, human capital development, education and health.
Tinubu also warned the boards and management of the commissions against corruption, marginalisation, politicisation and misuse of government resources.
“Such actions will not be tolerated, and government will not hesitate to sanction anyone found culpable,” he said.
The President said the regional commissions were not established to replace or duplicate the functions of state and local governments or existing federal institutions.
He said the North Central Development Commission should support efforts to address the security challenges in the region, stressing that development could only take place in a stable environment.
Meanwhile, the Nasarawa State Governor and Chairman of the North Central Governors’ Forum, Abdullahi Sule, said the region possessed the human and natural resources needed to drive economic development.
Sule said the region had demonstrated its capacity in agriculture, mining and industrial production, stressing the need to move from the extraction of raw materials to processing and value addition.
“When you are mining in North Central, you must also process in North Central,” the governor said.
He cited the establishment of a cement factory in Kogi State as an example of how local processing could transform Nigeria’s economy.
The governor said Nasarawa State, which had more than 400 steel licences when he assumed office in 2019, previously had no processing plant despite its mineral resources.
He said the state had since become home to the country’s largest and second-largest lithium processing plants.
“The North Central is the home of Benue cement. The North Central is the home of rice production. The North Central is the home of sesame production. So we have it all. Whatever it is that we are looking for, we have it,” Sule said.
He said what the region needed was leadership capable of developing and implementing long-term plans.
“What do we need more? We need thinkers. We need implementers. We need people who understand what it means to lead,” he said.
Sule also commended the Tinubu administration’s economic reforms, saying the policies had increased revenues available to the federal, state and local governments.
“Today, we are paying salaries without borrowing money from the bank. Even if you hate him, you cannot hate his policies. Even if you disagree with him, you cannot disagree with his policies. And that is the only way we can build,” he said.
Earlier, the Chief Executive Officer of the North Central Development Commission, Cyril Tsenyil said the commission’s role was to coordinate regional development and mobilise resources and partnerships rather than replace the six state governments and the Federal Capital Territory.
He said the commission’s 20-year plan would focus on developing regional economic corridors, processing agricultural and mineral resources, improving infrastructure and creating opportunities for young people.
He said the region should aspire to become one of Africa’s most competitive agricultural regions rather than merely being known as Nigeria’s agricultural hub.
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Railway Revamp Will Open New Frontiers for Trade, GDP Growth, Says Opeifa
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The Managing Director/Chief Executive Officer of the Nigerian Railway Corporation (NRC), Dr. Kayode Opeifa, has said an efficient railway system will boost Nigeria’s GDP, strengthen trade and food security, reduce transportation costs and improve the general standard of living.
Speaking on TVC’s This Morning Show, Opeifa said the Corporation is focused on optimising existing railway assets while encouraging greater participation by state governments, regional development commissions and the private sector.
“The NRC is not doing badly, but we could do better. We should have been better than where we are today if not for many years of inaction,” he said.
He explained that Nigeria inherited an extensive railway network linking major parts of the country, but decades of inadequate investment and the abandonment of the narrow-gauge system during the modernisation drive created major setbacks.
According to him, the present administration is correcting past mistakes by rehabilitating existing lines, expanding the standard-gauge network and strengthening partnerships with states.
Opeifa said moving railway matters from the Exclusive Legislative List to the Concurrent List has opened fresh opportunities for states and private investors.
He cited the Lagos Red Line as a successful example of what he described as “Railing with the States,” adding that similar initiatives are being pursued in Plateau and Zamfara states.
He also disclosed that regional development commissions and state governments across the South West, South East, North East and North Central are engaging the NRC on railway development.
“Every state and region is now showing interest, and the national government is ready,” he said.
On freight development, Opeifa said the Federal Government had completed the connection of the Lagos-Ibadan Standard Gauge Railway to the port, while goods are also being moved from Apapa towards Ilorin on the narrow gauge.
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He added that arrangements had been concluded to move freight from Lagos to Kano, Kaduna and Minna, stressing that the Corporation is determined to keep existing railway corridors commercially active.
The NRC boss said the Port Harcourt-Aba section of the Eastern corridor had also been completed and was operational.
He identified poor road links to railway stations as a major challenge to intermodal transportation and urged state governments to provide efficient connections between railway stations, cities and public transport networks.
According to him, railway remains a major driver of industrial development, supporting factories, agriculture, mining, petroleum distribution and inland container movement.
He said completion of rehabilitation works on the Western Line would create opportunities for increased movement of petroleum products and other freight by rail, thereby reducing pressure on roads.
Opeifa also disclosed that the NRC is exploring opportunities in livestock and agricultural transportation, including the use of refrigerated wagons for perishable goods.
On regional connectivity, he said Nigeria’s railway links with neighbouring countries would strengthen trade and give landlocked countries access to Nigerian seaports.
He expressed optimism that the Kaduna-Kano railway project could be completed by December 2026, paving the way for rail movement from Abuja to Kano.
Speaking on the suspended Warri-Itakpe Train Service, Opeifa apologised to passengers and said safety remained the Corporation’s priority.
He explained that although track rehabilitation and a test run had been completed, passenger operations would not resume until safety audits of the track, equipment and personnel were concluded.
Opeifa also said the NRC had completed a proof of concept for the use of Liquefied Natural Gas in railway operations and remained committed to tackling ticket racketeering.
“If we get the railway system right, our GDP will increase, farmers and small businesses will benefit, inflation will continue its downward movement and the general standard of living will improve,” he said.
He urged state and local governments, regional development bodies and private investors to take advantage of opportunities in the railway sector.
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Fake Agency Scandal Deepens as Ministers, DGs Face Foreign Travel Hurdles
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The Federal Government has barred ministers, heads of ministries, departments and agencies and other government appointees from embarking on official foreign trips without prior approval from the Office of the Secretary to the Government of the Federation.
The government also directed the Ministry of Foreign Affairs to make evidence of valid approval from the Office of the Secretary to the Government of the Federation a mandatory requirement for processing official travel documents, including official, diplomatic and service visas for government appointees.
The directive was contained in a circular signed by the Secretary to the Government of the Federation, George Akume, and addressed to top government officials and heads of major Federal Government institutions.
The move comes amid heightened scrutiny of government agencies and individuals claiming to represent the Federal Government, following the controversy surrounding the self-styled Director-General of the purported Presidential Foreign Intervention Promotion Council, Prince Adeniyi Adeyemi.
The controversy has raised questions about how individuals claiming official status can undertake engagements in the name of Nigeria, including foreign engagements, without clear evidence of government authorisation.
However, the latest directive is broader and applies to Federal Government appointees generally.
The circular, titled “Non-Compliance by Government Appointees with the Requirement for OSGF Approval for Official Foreign Trips and the Mandatory Inclusion of OSGF Approval in the Processing of Official Visas,” said the government had observed that some officials continued to embark on official foreign trips without obtaining the required clearance.
It stated, “It has been observed with concern that some Federal Government Appointees continue to embark on official foreign trips without obtaining prior approval from the Office of the Secretary to the Government of the Federation (OSGF), contrary to extant government directives and established administrative procedures regulating official travels outside the country.”
The SGF recalled that the government had issued several circulars over the years to regulate official foreign travel by ministers, heads of ministries, departments and agencies, boards, committees and other public officials.
According to the circular, these directives were issued “with a view to promoting accountability, fiscal discipline and effective coordination of Government business.”
The circular listed a September 18, 2023, circular on “Guidelines for Official Travels by Cabinet Members, Heads of Agencies and Public Officials”, a March 31, 2015, circular on “Guidelines for Official Trips by Chairmen of Federal Government Committees, Boards of Corporations and Government-Owned Companies” and a September 27, 2017, circular on “Additional Cost Control Measures to Guide Foreign Trips by Ministers and Senior Government Officials.”
It also referenced a March 8, 2018, circular on “Observed Indifferent Adherence to Extant Regulations Guiding the Conduct of Foreign Trips by Public Officials” and a November 20, 2012, circular on “Further Cost-Cutting Measures and Fiscal Prudence on Travel by Cabinet Members.”
Despite the previous directives, the SGF said cases of non-compliance had persisted.
The circular stated, “Despite these directives, instances of non-compliance continue to be recorded.”
It warned that the development had broader implications for government administration, stating, “This trend undermines Government’s efforts to ensure proper coordination, accountability, transparency, prudent management of public resources and effective monitoring of official foreign engagements undertaken on behalf of the Federal Government of Nigeria.”
The government consequently reaffirmed the requirement for prior clearance.
The circular stated, “Accordingly, all official foreign trips undertaken by Federal Government appointees shall continue to require prior approval from the Office of the Secretary to the Government of the Federation before such trips are undertaken, except where otherwise expressly provided by law or by specific Presidential directive.”
It added, “This requirement is consistent with the principles of due process, centralised coordination of government business and prudent management of public resources, as reflected in the Public Service Rules, 2021 Edition, the Financial Regulations (Revised Edition, January 2009) and other extant Government directives.”
As part of the immediate measures to strengthen compliance, the Ministry of Foreign Affairs has been directed to ensure that evidence of OSGF approval forms part of the documentation required for official foreign travel.
The circular directed that “The Ministry of Foreign Affairs shall include evidence of valid OSGF approval, where applicable, as a mandatory requirement in the processing of requests for official Notes Verbales, diplomatic facilitation and all applications relating to official foreign travel by Government Appointees.”
The ministry was further directed to communicate the requirement to foreign missions and embassies operating in Nigeria.
It stated, “The ministry is further requested to formally communicate this requirement to all Foreign Missions and Embassies accredited to the Federal Republic of Nigeria, advising that applications for Official, Diplomatic or Service Visas by Government Appointees should, where applicable, be accompanied by duly issued OSGF travel approval as part of the mandatory supporting documentation.”
The new measure therefore gives foreign missions an additional means of verifying whether a Nigerian government official travelling on official business has received the required authorisation.
The Office of the Auditor-General for the Federation was also assigned responsibility for checking compliance with the directive during audit exercises.
According to the circular, “The Office of the Auditor-General for the Federation shall require every government appointee who undertook an official foreign trip at public expense to produce evidence of the requisite OSGF approval during audit exercises.”
The government further warned that public funds spent on unauthorised foreign trips would be subject to scrutiny.
It stated, “Any expenditure incurred in respect of official foreign travel undertaken without the required approval shall be reported appropriately in accordance with extant Financial Regulations and applicable audit procedures.”
The directive also places a direct responsibility on accounting officers and heads of Federal Government institutions to prevent the processing of public funds for unauthorised trips.
It stated, “Accounting Officers, Permanent Secretaries, Chief Executive Officers and Heads of Federal Government Agencies shall ensure that no expenditure relating to official foreign travel by government appointees is processed unless the requisite OSGF approval has first been obtained.”
The SGF consequently directed all ministers, permanent secretaries, accounting officers and heads of ministries, departments and agencies to ensure compliance.
The circular stated, “All Honourable Ministers, Permanent Secretaries, Accounting Officers and Heads of Ministries, Departments and Agencies are hereby directed to ensure strict compliance with the provisions of this Circular.”
It further stated that the directive was effective immediately, declaring, “This circular takes immediate effect and supersedes any administrative practice inconsistent with its provisions, without prejudice to existing extant regulations governing official foreign travel.”
The circular was addressed to the Chief of Staff to the President; Deputy Chief of Staff to the Vice President; all Honourable Ministers and Ministers of State; Head of the Civil Service of the Federation; National Security Adviser; Economic Adviser to the President; Special Advisers and Senior Special Assistants.
It was also addressed to the Chief of Defence Staff, Service Chiefs and Inspector-General of Police; Governor of the Central Bank of Nigeria; Chairman, Federal Civil Service Commission; Chairman, Police Service Commission; Chairman, Code of Conduct Bureau; Chairman, Code of Conduct Tribunal; Chairman, Federal Character Commission; Chairman, Revenue Mobilisation, Allocation and Fiscal Commission; Chairman, Federal Inland Revenue Service; Chairman, Independent National Electoral Commission; Chairman, National Population Commission; Chairman, Independent Corrupt Practices and Other Related Offences Commission; Chairman, Economic and Financial Crimes Commission and Chairman, National Drug Law Enforcement Agency.
Other recipients listed in the circular were all permanent secretaries and Heads of Extra-Ministerial Departments; Clerk of the National Assembly; Chief Registrar of the Supreme Court of Nigeria; Accountant-General of the Federation; Auditor-General for the Federation; and Directors-General and Chief Executives of Parastatals, Agencies and Government-Owned Companies.
The breadth of the recipients means the directive covers ministers, senior political appointees, permanent secretaries, security chiefs, heads of regulatory and anti-corruption bodies, electoral institutions, financial institutions, government agencies and government-owned companies.
The development is coming against the backdrop of the controversy over the purported PFIPC, which has drawn attention to the need for stronger verification of individuals and organisations claiming to represent the Federal Government.
The purported PFIPC and its self-styled Director-General, Adeyemi, have been at the centre of investigations into alleged impersonation and the use of questionable government documents.
The matter has also raised concerns about how purported government officials could engage public institutions and foreign entities while claiming to represent Nigeria.
The latest directive, however, does not single out the purported PFIPC or Adeyemi.
Instead, it establishes a general requirement that government appointees must obtain central approval before undertaking official foreign engagements.
By directing the Ministry of Foreign Affairs to demand evidence of OSGF approval, the government is also creating a formal verification mechanism for foreign missions processing travel documents for Nigerian officials.
The financial provisions of the circular further link official travel approval to accountability for public expenditure, as accounting officers have been directed not to process expenses relating to foreign trips unless the required approval has been obtained.
The measures are expected to strengthen the Federal Government’s control over official foreign engagements, reduce unauthorised travel and ensure that persons travelling abroad in the name of the government have the necessary approval to represent Nigeria.
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