Former Minister of Communications, Adebayo Shittu, has thrown his weight behind the Nigerian Communications Commission, NCC, over its proposed 50 per cent tariff increase for telecom operators in the country, calling it a necessity for economic progression.
Speaking on Saturday in an interview on Eagle 102.5 FM, which was monitored by DAILY POST in Abeokuta, Shittu said the proposed tariff hike should not be up for debate, given the economic constraints facing all sectors.
According to Shittu, it is unreasonable to expect telecom companies—whose aim is to provide communication services while also making a profit—to maintain a stable price for over 10 years when other sectors have quadrupled theirs.
His words: “Nigeria is a very difficult country, and many times, Nigerians don’t want to listen to the truth. I have to remind people that there was a time when we didn’t have sufficient telecommunication services in Nigeria. To use a phone at that time, you had to go to specific locations and pay up to N50.
“When telecom companies were invited, we didn’t ask them to provide a Father Christmas service; we invited them to do business, make a profit, and make life more comfortable for Nigerians, particularly in the area of communication.”
He added that telecom companies have provided services at stable prices in Nigeria, whereas in neighbouring countries like Benin and as far north as Algeria, people pay significantly more for the same service.
“At the time we were paying N4.00 per SMS, in Benin Republic, people paid the equivalent of N50.00, while in Algeria, it was N150.00.
“The removal of fuel subsidies and other policies have caused major shifts in the country, leading to inflation and price hikes for goods and services. Do we expect the telecom industry to collapse? If they are unable to sustain their services, they will simply shut down, and Nigeria will return to square one, when we had no telecom services.
“For me, the 50 per cent increase is a necessity if we want the telecoms to remain afloat and profitable. Over the last 10 years or so, their prices have been very stable. Which other sector has experienced that kind of stability?” he added.
The former minister also cited factors such as the construction of masts, electricity costs, and the security of masts and other equipment as reasons Nigerians should consider before protesting the tariff increase.
Reacting to the proposed industrial action on February 4 by the labour unions, Shittu described it as unnecessary.
DAILY POST reported that the Nigeria Labour Congress, NLC, proposed a five per cent telecom tariff increase, rejecting the 50 per cent approved by the Nigerian Communications Commission.
In a recent update, NLC disclosed on Friday that it would embark on a nationwide mass protest against the planned tariff hike.
However, Shittu urged NLC to refrain from protesting against the telecom tariff increase if they are not willing to do the same for other sectors, particularly the rising cost of food.
