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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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Dangote Denies Fallout with Elumelu, Debunks Financial Support Claims
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The Dangote Group has dismissed as false and malicious claims of a rift between its President, Aliko Dangote, and the Chairman of Heirs Holdings, Tony Elumelu, and also rejected allegations that he (Dangote) solicited support for financing his refinery project.
In a statement issued on Sunday, the group described as “entirely baseless” a publication stating that Dangote had revealed why he distanced himself from Elumelu, stressing that neither the businessman nor the organisation made such remarks.
The statement, signed by the Group Chief Branding and Communications Officer, Anthony Chiejina, said the report misrepresented both personal and corporate positions and added that there was no disagreement between the two prominent business leaders.
“The Dangote Group has become aware of a publication titled ‘Aliko Dangote Speaks Out on Why He Distanced Himself from Tony Elumelu’, which is false, malicious, and baseless. At no time did the President or the Group make such statements or express such sentiments,” the statement read in part.
The company further dismissed claims that the multi-billion-dollar Dangote Petroleum Refinery & Petrochemicals was financed through personal borrowing from friends, describing such assertions as inaccurate and a deliberate misrepresentation of facts.
According to the group, Dangote does not fund projects through informal personal loans, noting that any such claims should be backed by verifiable evidence.
“As a matter of principle, Aliko Dangote neither finances his projects through personal borrowing from friends nor engages in lending arrangements of that nature. Any individual making such claims should provide verifiable evidence to substantiate them,” the statement added.
The group also clarified that there was no strain in the relationship between Dangote and Elumelu, maintaining that both men continue to enjoy a longstanding and cordial relationship despite the claims circulating in the report.
The clarification follows the circulation of a widely shared online post which alleged that Dangote fell out with Elumelu after a failed financial assistance request during the construction of the refinery.
In the post, attributed to Dangote but now disowned by the company, the author claimed that in 2021, when the refinery project was about half-completed, he ran out of funds and approached several business associates for support, including Femi Otedola, Abdulsamad Rabiu, Mike Adenuga, and Elumelu.
The post further alleged that Elumelu promised $20m but later became unreachable, while other associates reportedly raised $500m to support the project, with Otedola said to have contributed $300m.
However, the Dangote Group said such claims were fabricated and should not be attributed to its president, reiterating that the financing narrative presented in the post was false.
Beyond the disputed publication, the company raised concerns over what it described as a growing trend of fabricated statements and the unauthorised use of Dangote’s identity in digitally manipulated content.
It warned that the misuse of his name, likeness, and image in artificial intelligence-generated advertisements and other misleading materials poses reputational risks and could amount to fraud.
“Furthermore, the group notes with concern a rising pattern of fabricated statements and the unauthorised use of Aliko Dangote’s name, likeness, and image in AI-generated advertisements and other misleading content. These actions amount to reputational harm and potential fraud,” the statement said.
The company cautioned individuals, organisations, and platforms involved in creating or disseminating false information to desist immediately, warning that it would not hesitate to pursue legal action where necessary to protect its reputation and that of its leadership.
The Dangote Group reaffirmed its commitment to maintaining high standards of integrity while continuing its industrial and economic contributions across Africa, particularly in advancing self-sufficiency and sustainable development.
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Rising Attacks on Abuja–Kaduna Trains Spark Alarm as NRC Seeks Urgent Community Support
The Nigerian Railway Corporation (NRC) has raised serious concerns over a growing wave of attacks targeting train operations along the Abuja–Kaduna rail corridor, describing the incidents as dangerous and economically damaging.
In the latest attack, suspected vandals reportedly targeted a moving train around Kilometer 177 on the route, pelting stones at the locomotive and damaging its windscreen. The incident is one of several recorded in recent weeks, highlighting an alarming pattern of hostility along the critical transport corridor.
According to the Corporation, similar acts have occurred in multiple locations, including Gidan Busa and Sarki Gora Village in Kakau District, within Chikun Local Government Area of Kaduna State. In total, more than six attack points have been identified within a two-week span, intensifying operational challenges for railway authorities.
The NRC warned that these repeated attacks pose a direct threat to passengers, railway personnel, and infrastructure. It described the acts as economic sabotage capable of undermining the Federal Government’s heavy investment in rail transport and disrupting a key component of national mobility.
Despite the risks, the Corporation confirmed that train services along the corridor have continued, with heightened safety measures and increased vigilance by railway staff to ensure passenger safety. Management commended security agencies for their ongoing collaboration in protecting railway assets and maintaining order along the routes.
Efforts are currently underway in partnership with security operatives, community leaders, and other stakeholders to strengthen surveillance, identify those responsible, and bring them to justice.
The NRC has also appealed to residents living along railway corridors to play an active role in safeguarding the infrastructure. It urged communities to report suspicious movements and discourage acts of vandalism, warning that continued attacks could disrupt smooth service delivery if not urgently addressed.
Reaffirming its commitment, the Corporation assured Nigerians that it remains focused on providing safe, secure, and efficient rail services nationwide, while intensifying efforts to protect both passengers and critical railway infrastructure.
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Tinubu’s $2.99bn Rail Push Sparks Calls for Nationwide Network Expansion
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By Sotayo Olayinka
The Federal Executive Council (FEC) on Thursday approved a $2.99 billion package of rail infrastructure projects, signalling a renewed commitment by the administration of Bola Ahmed Tinubu to deepen infrastructure development and unlock economic growth.
While this initiative is widely commendable, there is a growing call for the Federal Government to extend similar support to the Nigerian Railway Corporation (NRC). Strengthening the corporation would significantly improve inter-state transportation, ease the pressure on road networks caused by overloaded trucks, and enhance logistics efficiency nationwide.
Nigeria has already recorded progress with the Lagos–Ibadan rail corridor. However, greater impact can be achieved if the government connects Lagos to Abuja, complementing the existing Kaduna–Katsina line. Such integration would go a long way in addressing the country’s persistent transportation challenges. There is also increasing public demand for the expansion of rail services to the northern and eastern regions, which would create a more unified and dependable national transport system.
Many Nigerians still recall the 1960s, when train services operated seamlessly from Lagos to Kaduna and even Sokoto—an era that underscored the immense potential of an efficient rail network.
Expanding the railway system aligns with the administration’s Renewed Hope Agenda and would deliver tangible results in infrastructure development. There is also a widely held view that the current leadership of the NRC, under Managing Director Kayode Opeifa, is making meaningful progress in revitalizing rail services.
Sustained government backing will be critical to consolidating these gains and building a modern, efficient, and nationally connected railway system capable of driving economic growth and easing transportation challenges across Nigeria.
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