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Telco Subscribers Propose 10% Tariff Hike, Reject NCC’s 50% Approval

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Telco Operators

By Adedapo Adesanya

The National Association of Telecommunications Subscribers (NATCOMS) wants a maximum of 10 per cent increase in tariffs as against the 50 per cent announced by the Nigerian Communications Commission (NCC).

Recall that the leadership of the body in an interview on Tuesday said it would challenge the federal government’s decision to allow operators increase tariff by 50 per cent in a court of law.

In another round of interview with the News Agency of Nigeria (NAN) in Lagos, the President of NATCOMS, Mr Deolu Ogunbanjo, said the group understood the dilemma faced by the telecommunications industry and had suggested a 5 – 10 per cent marginal increase in tariff.

He said that the approval by the federal government for the telcos to raise tariffs at a maximum of 50 per cent was unacceptable, arguing that it will “affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators.”

“It will increase operational costs,” he added.

According to Mr Ogunbanjo, experts had x-rayed the telecoms sector and said it was in intensive care, meaning it needed to be attended to.

“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it.

“So, that is why we painfully agreed that, look, a moderate or marginal five per cent to 10 per cent increase will be fine.

”You know, we do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s Gross Domestic Product.

“So, we appreciate that. It’s painful, but we granted. We said, okay, we will not mind if it is just five per cent to 10 per cent increase,’’ he said.

The NATCOMS boss stressed that, if the operators really needed funds, they should explore the Nigerian Exchange (NGX) Limited.

“The industry operators can opt for an Initial Public Offer (IPO) for Nigerians to buy shares in their companies as a way of raising funds.

“However, a situation where a whole 50 per cent is granted for tariff hike is not cheap and it is a no! no! from us subscribers.”

He reiterated that the body will take the case to the court.

“I mean, for what we are already going through, no for us, we will challenge this in court,’’ Mr Ogunbanjo insisted.

The NCC announcing the hike on Monday said the increase was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

“…Over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,” the announcement statement noted.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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IBM to Exit Nigeria, Others from April 2025 Amid Low Sales

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IBM leaves nigeria MIBB

By Aduragbemi Omiyale

One of the global tech giants, International Business Machines (IBM), is planning to quit a few markets in Africa from April 1, 2025.

According to reports, IBM will leave Nigeria, Ghana and other key African markets because of its declining sales in the region.

The company has struggled to impress consumers because of stiff competition from rivals like Dell, Huawei and others with attractive products.

Its operations in Nigeria and other African countries will now be handled by MIBB, a subsidiary of the multinational conglomerate, Midis Group.

MIBB will sell a wide range of IBM products and services in Africa like software, hardware, cloud solutions, and consulting services.

IBM has had a significant presence in Nigeria for over five decades, playing a crucial role in the country’s technology landscape.

The company provided infrastructure and consulting services to key sectors, including banking, telecommunications, oil and gas, and government.

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50% Tariff Hike to Trigger Investments in Telecom Sector—ATCON

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telecom-investors

By Adedapo Adesanya

The Association of Telecommunication Companies of Nigeria (ATCON) says the increase in telecommunication tariffs by 50 per cent will boost investment in the sector.

ATCON President, Mr Tony Emoekpere, said the public concern was natural and expected, especially when considering the economic realities of many Nigerians.

He, however, described the increment as an investment in the future of Nigeria’s digital economy, citing its numerous benefits.

“For years, telecom operators have operated under immense financial strain due to foreign exchange fluctuations, high energy costs, multiple taxation, and rising infrastructure expenses.

“These challenges have made it increasingly difficult to expand network capacity, improve service quality, and bridge the digital divide.

“Without adjustments in pricing, Nigeria’s digital infrastructure would risk stagnation, making it harder for the country to compete in the global digital economy,” Mr Emoekpere said in an interview with the News Agency of Nigeria (NAN) yesterday.

He said the adjustment was not just about pricing but ensuring enough resources to maintain and improve the quality of services Nigerians rely on daily.

“This tariff increase is an investment in the future of Nigeria’s digital economy, as it will enable operators to expand 4G and 5G coverage across more locations, particularly the underserved areas.

“This increment will bring about the upgrade of network sites to ensure better reliability.

“It will also enhance broadband speeds to support businesses, education, fintech, telemedicine, and other critical digital services.

“At the end of the day, the success of this move will be measured by real and tangible improvements in quality of service with faster internet speeds, fewer dropped calls, and wider coverage, leading to the digital transformation we all desire.

“That is the ultimate goal, and the telecom industry is fully committed to delivering on this promise,” Mr Emoekpere said.

According to him, the tariff hike is necessary, being the only viable option to ensure the right investments guarantee good quality service.

He added that the Global System for Mobile Communications Association (GSMA) had recognised that sustainable pricing was crucial for long-term network investments.

He, however, stated there were still other pressing industry challenges that must be addressed if the government would truly support digital transformation.

“The focus should also be on simplifying Right of Way (RoW) permits to speed up fibre deployment.

“It should also be to fully enforce Critical National Information Infrastructure (CNII) protections to stop vandalism of telecom assets.

“Again, we should emphasise the reduction of the multiple layers of taxation that telecom operators face at federal, state, and local levels, and provide incentives for rural broadband expansion to ensure digital inclusion across all communities,” Mr Emoekpere said.

According to him, the positive news is that the issues are at different stages of being solved.

He noted that if the recent successes like the resolution of the USSD debt issue were anything to go by, “We are optimistic that the current administration will make progress in these areas as well.

“This should not stop us from remembering that consumers have a right to demand better services.

“The tariff increase should come with a visible improvement in quality: faster speed, wider coverage, and greater reliability.

“From all indications, the telecom operators are geared toward meeting these expectations, and the NCC has set clear quality service targets,” Mr Emoekpere said.

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Nigeria’s Digital Quality of Life Index Declines to 100

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Corporate Internet Banking

Surfshark’s Digital Quality of Life Index (DQL) 2024 ranks Nigeria 100th in the world. The study indicates how well the country is performing in terms of overall digital well-being compared to other nations. Nigeria drops by twelve places from last year, which reflects a lack of commitment to developing the digital landscape and positioning the country as a leader in leveraging technological advancements to improve citizens’ quality of life.

“In an election year like 2024, where the digital realm shaped political discourse and societal values, prioritizing digital quality of life proved to be more important than ever. It helps to ensure informed citizens, protects democratic processes, and fosters innovation. Our annual project helps to better understand where each county stands in terms of digital divide, highlighting where a nation’s digital quality of life excels and where further focus is required,” says Tomas Stamulis, Chief Security Officer at Surfshark.

Out of the Index’s five pillars, Nigeria performed best in e-security, claiming 76th place, but faced challenges in e-infrastructure, ranking 108th. The nation ranks 94th in e-government, 103rd in internet quality, and 106th in internet affordability. In the overall Index, Nigeria lags behind South Africa (66th) and Kenya (89th). Collectively, African countries lag behind in their digital quality of life, Nigeria taking 14th place in the region.

Nigeria ranks lower in e-government than 77% of the countries analyzed, with 93 countries above.

E-government determines how advanced and digitized a country’s government services are. A well-developed e-government helps minimize bureaucracy, reduce corruption, and increase transparency within the public sector. This pillar also shows the level of Artificial Intelligence (AI) readiness a country demonstrates. Countries with the highest readiness to adopt AI technology are also ready to counter national cyberthreats. Nigeria ranks 94th in the world in e-government — six places lower than last year.

Nigeria is 76th in the world in e-security —  three places lower than last year.

The e-security pillar measures how well a country is prepared to counter cybercrime and how advanced a country’s data protection laws are. In this pillar, Nigeria lags behind South Africa (75th) and Kenya (69th). Nigeria is unprepared to fight against cybercrime, the country has some data protection laws.

Nigeria’s internet quality is 25% lower than the global average.

  • Nigeria’s fixed internet averages 39Mbps. To put that into perspective, the world’s fastest fixed internet — Singapore’s — is 347Mbps. Meanwhile, the slowest fixed internet in the world — Tunisia’s — is 14Mbps.
  • Nigeria’s mobile internet averages 78Mbps. The fastest mobile internet — the UAE’s — is 430Mbps, while the world’s slowest mobile internet — Yemen’s — is 12Mbps.

Compared to South Africa, Nigeria’s mobile internet is 15% slower, while fixed broadband is 51% slower. Since last year, mobile internet speed in Nigeria has improved by 65%, while fixed broadband speed has grown by 55%.

The internet is unaffordable in Nigeria compared to other countries.

  • Nigerians have to work 10 hours 43 minutes a month to afford fixed broadband internet. It is 46 times more than in Bulgaria, which has the world’s most affordable fixed internet (Bulgarians have to work 14 minutes a month to afford it).
  • Nigerians have to work 2 hours 44 minutes 14 seconds a month to afford mobile internet. This is 18 times more than in Angola, which has the world’s most affordable mobile internet (Angolans have to work 9 minutes a month to afford it).

Nigeria is 108th in e-infrastructure.

Advanced e-infrastructure makes it easy for people to use the Internet for various daily activities, such as working, studying, shopping, etc. This pillar evaluates how high internet penetration is in a given country and its network readiness (readiness to take advantage of Information and Communication Technologies). Nigeria’s internet penetration is low (35% — 109th in the world), and the country ranks 102nd in network readiness.

On a global scale, investing in e-government and e-infrastructure improves digital well-being the most

Among the five pillars, e-government has the strongest correlation with the DQL index (0.92), followed by e-infrastructure (0.91).

Internet affordability shows the weakest correlation at 0.65.

METHODOLOGY

The DQL Index 2024 examines 121 nations based on five core pillars that consist of 14 indicators. The study is based on the United Nations’ open-source information, the World Bank, and other sources. Nigeria’s full profile in the 2024 Digital Quality of Life report and an interactive country comparison tool can be found here: https://surfshark.com/research/dql/country/NG.

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