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00:00Nigerian Labour Congress suspended its planned protest over the 50% tariff increase as the
00:04government agreed to set up a broader committee with five representatives from both sides
00:09to ensure a fair and inclusive government agreement in two weeks.
00:13Mbenga Adibayo, the chairman of the Association of Licensed Telecommunications Operators of
00:17Nigeria joins me now to discuss the tariff increase and its implications for the future
00:21of Nigeria's telecom sector.
00:22Thank you so much for your time today.
00:24It's good to see that there's no strike action or protest going in there.
00:28At least work can then continue in terms of the telecom sector.
00:32But let's get an update on how and the progress made in the conversations with the labor unions.
00:37Thank you for having me.
00:38We saw the outcome of the meeting between the federal government, our minister, our
00:43regulator and as well as the organized labor group.
00:47We saw the outcome of their meeting last night and we are pleased that we have now government
00:53intervention in that regard and government are trying to mediate between all the parties
00:57to be able to see how best the situation can be absorbed by everyone.
01:02It's good that there is a 10-man committee in place comprising people from both sides
01:07of the divide.
01:08But the fact remains that as an industry we didn't do anything outside the provisions
01:11of law.
01:13The Nigerian Communications Act 2003 allows that we make representation to the Nigerian
01:19Communications Commission, NCC, asking for price review based on economic indicators
01:26and the NCC has a duty to conduct market study, the outcome of which they will use in determining
01:31what is the minimum base price, what is the highest band price that any operator can charge.
01:37And in the process of this we have fulfilled all lay down procedures for price review.
01:43And thankfully we did ask for 100% plus but government granted 50% which according to
01:48them is to balance market demand, market forcing with affordability and sustainability of the
01:52sector.
01:53And so in that regard I think what we have seen with the outcome of the meeting yesterday
01:57is progressive.
01:58It means that parties are now going to look at the issues much more than before.
02:01Organisers said they agree because they are not part of the conversation and really and
02:05truly in the scheme of things our line of communication is with government through the
02:10Nigerian Communications Commission.
02:12We don't have a line of communication with the trade unions and therefore government
02:16that do have a right to discuss with other parties they are doing so now and I think
02:21it's in the interest of everyone.
02:23What we must keep in mind is that our point of emphasis is in the sustainability of the
02:29sector because even for there to be some reaction from the labor unions it has to be that this
02:37institution remain active.
02:39If you have a sector that is collapsing or that has collapsed there will never be any
02:42basis for any agitation again whatsoever.
02:45And therefore our concern has been on how the industry will remain sustainable and how
02:49we are going to deliver services to all people and all persons at all times including members
02:54of the labor union.
02:57And so I think it's a fact that we must keep in mind.
02:59I'm glad hearing also the chairman of the Nigerian Labor Congress yesterday.
03:02They do understand the fact that yes they need to have a review of price but the question
03:07then is what quantum of review should we have given that we haven't had any price review
03:12in almost 12 years.
03:14It's good to see sustained engagements play out here and now we'll see a broader committee
03:18in place here and which has from the side of the labor unions is a case of representation
03:24in the process.
03:25They want to be involved there.
03:26But I'd like you to speak to that and also the timeline, two weeks and what can we expect
03:31in these two weeks.
03:32I think we must keep in mind that we do not have a mandate to seek the concurrence of
03:40the trade union on price matters.
03:42We must keep that in mind.
03:44And therefore there are requests for having to be part of a conversation.
03:48We don't see it.
03:49We don't have that line of communication with them.
03:52And so the regulator is our regulator.
03:55Regulators represent governments in this regard.
03:58And so government at the highest level has called them to a conversation.
04:01It's not to say that a prison has been laid.
04:03We must keep that in mind.
04:06Tariff issues are commercial issues and they are best left for market forces to determine.
04:10So we need to be careful on who and who is involved when it comes to matters of tariff.
04:14However, however, we are not unmindful about the economic problems of the country.
04:18And we're not unmindful about the impact of that on people.
04:20But would you say it's a flaw in the entire process if the labor unions are not involved
04:25in the conversation or if you don't have a direct line of communication with the unions?
04:27No.
04:28On what basis will they be?
04:29It's a commercial.
04:30It's a willing-buyer-willing-seller arraignment.
04:31The services, it's not the health man, it's not medical services.
04:35It's a willing-buyer-willing-seller.
04:37You can choose to use communication.
04:38You can choose not to use communication services.
04:41And so there is no line of, this is the line that he has to go, this is the line that he
04:44has to go.
04:45So we have to talk to a trade union to do this.
04:47No, no, no, no, no.
04:48There is no such provision under the law.
04:51Government in its wisdom has done what it's right to do.
04:53And that is that when parties express grievances, no matter who they are, call them for dialogue
04:57for greater good.
04:58And I think that's what government has done.
04:59So a two-man, I mean, a 10-man committee has been set up with a two-inch ultimatum to look
05:03at the issues.
05:04I hope that they will look at the facts.
05:05And the fact is, I hope also the outcome of it will suggest that even the 50 percent that
05:09has been approved is way lower than what we deserve.
05:12So maybe it would be nice that this committee goes to work and they come out to say it's
05:15not 50 percent.
05:16It's actually 80 percent more than you guys need.
05:17And we will be happy.
05:18Yeah, yeah, because we don't want a situation where we have disruptions in the system because
05:23there are grieved parties like labor unions who then can cause damage or who then can
05:28more or less impact how smooth operations of the telecom sector.
05:33And I agree, most Nigerians would agree that, yes, a price increase is imminent at this
05:37point.
05:38But we need to be more witnesses to what's happening in the economy in Nigeria and imagine
05:41what businesses like yours have been going through.
05:44But then it's where that trade-off is, that's where the conversation is, is, you know, 50
05:49percent Ike from the SOSDID study, someone will ask and say, OK, was the NCC study inclusive
05:55enough to carry all the members along?
05:57I don't know.
05:58No, I wish, I wish that, I wish that this issue of protest on the increase of telecom
06:07services has taken place prior to now.
06:11And I say so because there are cost input that has led to we agitating for price review.
06:16Part of it is review of cost of energy.
06:21If when our price of petrol and diesel went up by several percentage that it did, if labor
06:28had gone to protest and they succeeded in getting government to stop it at the time,
06:32we would not be here.
06:34So for them coming now to react to we asking to review prices on account of other economic
06:39indicators leading to our own situation, I think it's after the fact.
06:44So we, our case should not be a case that they will say government has to stop, but
06:48government should have done other, are taking other steps to prevent where we are.
06:53Because if price of diesel hasn't gone up to what it is today, maybe we will not be
06:56where we are.
06:57If other economic factors are not the way they are.
06:59So if labor will have been right, what they should have done is have gone to protest prior
07:04to now, not on account of our services.
07:07And I say again, during fair price review, there were protests, but we are still where
07:13we are.
07:14Energy increased prices.
07:15There are protests.
07:16That's where we are.
07:17I'm not saying that they don't have a right to react.
07:20And I appreciate their right to react.
07:22And that's what they have done.
07:23But I'm only saying that we do not have an obligation to consider a dialogue with them
07:29before a commercial decision is made on factors that are economic based and not on political
07:34basis.
07:35All right.
07:36There are quite a lot to be addressed here.
07:37But we're at the start of time.
07:38But one quick question before you leave, and I just want a one-on-one answer from you.
07:42How optimistic are you about the decision that will come out in the next two weeks?
07:45I am very optimistic because the facts will speak for itself.
07:48Numbers don't lie.
07:49The figures are there to justify that we have economic indicators and high headwinds, economic
07:54headwinds leading to price review.
07:56So I have no doubt that it will come to a positive outcome.
07:58All right.