FRICA’s largest telecom market is in turmoil. Uncertainty mixed with outrage deepened after the telcos implemented a 50 per cent tariff hike on February 17, 2025.
Concerning the hike, the Mobile Network Operators (MNO) are on one side. On the other side are the consumers, who are aggrieved by the increment amid woeful services.
Both sides have their points.
In 2013, the inflation rate was in the single digits at 8.50 per cent. In December, inflation topped a 30-year high at 34.80 per cent. After the rebasing by the NBS, inflation dropped to 24.48 per cent in January. In South Africa, the January inflation rate is 3.0 and 2.0 per cent in Morocco.
That is not all. Then, the naira was exchanged for N163.9 to $1. In May 2023, the rate was N467/$1. Fast forward to the present, and the minimum average is N1,500/$1.
The cost of energy is steep. Pre-subsidy removal, diesel, used in powering the generators at the base stations, sold for N842 per litre, and petrol was N187/litre. Diesel is now N1,100/litre and petrol at N960/litre.
The reality is that the Federal Government and other sectors have increased their prices, which has a domino effect on the telcos. Among others, President Bola Tinubu removed petrol subsidies at his inauguration, floated the naira two weeks after and cancelled electricity subsidies in 2024.
Therefore, Nigeria cannot afford to toy with the Telecomms industry. With the tariff hike, the Mobile Network Operators should improve the quality of their services.
The Tinubu government should operate a better economy with reduced inflation, stable and favourable exchange rates, and improved security.
BY
AKINWALE FASASI
HEAD, YORUBA UNIT,
NEWS & CURRENT AFFAIRS DEPARTMENT,
SUCCESS 105.3 FM,
IBADAN.
