Former Minister of Communications, Adebayo Shittu, has opined that the Nigerian Communications Commission, NCC, proposal of a 50 per cent tariff increase for telecom operators in the country is necessary for economic progression.
OsunDailyNG reports that Shittu, in an interview on Eagle 102.5 FM in Abeokuta on Saturday, said the proposed tariff hike should not be up for debate, because Nigeria may return to the era of no telecom services if operators are unable to sustain their services.
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.
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.
Shittu further described the Nigeria Labour Congress (NLC) proposed industrial action on February 4 as unnecessary, adding that the 50 percent increase is necessary if Nigerians want the telecoms to remain afloat and profitable.
He said, “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.
“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?”
