- We’re pushed to the wall, citizens tell FG, state govts
- How people adopt fresh coping mechanisms for growing utilities’ rates
- Motorists accuse marketers of hoarding fuel as scarcity persists
The hike in fuel, electricity tariff and cable television subscription rates, among others, have further worsened the plight of Nigerians, investigations by The Point have shown.
Many Nigerians lament that the hikes have affected their cost of living, source of livelihoods and general wellbeing, among other things.
They lamented that at a time many households were struggling to put food on their tables, the recent increments in electricity tariff, subscription rates for DSTV and GoTV and proposed tariff hike for both voice and data services of MTN, Glo, Airtel and other telecommunications operators had become fresh sources of worry for poor Nigerians.
Many Nigerians have also expressed displeasure over difficulty in purchasing Premium Motor Spirit, popularly known as petrol in some states in the country.
The affected persons, including commercial and private vehicle owners, motorcyclists, artisans, accused marketers of hoarding fuel, a situation that has created artificial scarcity and inflation.
Some Nigerians who spoke with The Point in their separate interviews berated political leaders for allowing companies, agencies, industries and organizations to increase their goods and services when ordinary citizens could not boast of three square meals.
According to them, they are being pushed to the wall with worsening inflation of goods and services in the country.
In this month of April alone, there have been pockets of hikes in basic utilities such as electricity and satellite television subscriptions, a development which has elicited condemnations from Nigerians.
“Already, it’s becoming very difficult to import equipment as costs continue to increase. So, increasing tariffs is no longer a matter of choice. It is a matter of urgency because a further delay will be at the detriment of the industry.”
No sooner had the Nigerian Electricity Regulatory Commission ordered the immediate upward review of electricity tariffs, Multichoice, a satellite television service provider in Nigeria, announced an increment in monthly subscription fees for DSTV and GOTV.
Multichoice, which currently enjoys the monopoly of satellite television service provider in the country, revealed its new subscription rates a week after, citing operational costs and the need to enhance service quality.
As if that was not enough, last week, MTN, Glo, Airtel and other telecom operators in the country announced their preparation for a tariff hike for both voice and data services, and are currently awaiting the outcome of the Nigerian Communications Commission’s cost-based study.
A cost-based study by KPMG, commissioned by the NCC, aims to recommend the most appropriate pricing structure for the industry based on its findings considering the economic variables of the operating environment.
An official from the telecom sector, who preferred to remain anonymous, said that the planned price increase has become critically urgent.
Delaying it further, he warned, could threaten the viability of some telecom businesses.
According to him, adjusting prices upwards is essential for sustaining the telecom business amidst current economic challenges, such as the high cost of diesel and the significant depreciation of the naira against the dollar, which affects equipment imports.
The official highlighted that with the majority of their costs in dollars and earnings in Naira, sustainability is impossible without a tariff revision, especially as equipment importation becomes increasingly costly.
“We are earning in Naira and about 80 percent of our costs are in dollars. There’s no way we can have a sustainable business without increasing our prices with the value of the Nigerian currency falling every day.
“Already, it’s becoming very difficult to import equipment as costs continue to increase. So, increasing tariffs is no longer a matter of choice. It is a matter of urgency because a further delay will be at the detriment of the industry,” he said.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, also argued that the tariffs set by the regulator are insufficient in light of escalating operational expenses.
The recent increments have generated widespread lamentation and condemnations from some Nigerians who view them as insensitive, considering the prevailing economic hardship.
Subscribers to Multichoice expressed concern that the increase in subscription fees is a significant financial burden.
While many citizens urged the government to checkmate incessant increases, others asked approximate authorities and stakeholders to break the monopoly being enjoyed by the company.
Many subscribers questioned the justification for the steep price increase and revealed their decision to boycott the satellite subscriptions which have been found to be sources of entertainment and relaxation for households.
A social development worker in Ibadan, Kingsley Adaga, said, “DSTV is killing Nigerians, the Federal Government must urgently intervene and rescue the citizenry from the monopoly Multichoice is enjoying.”
He disclosed that he has stopped subscribing to the satellite television, saying, “Nigerian government should be sensitive to our concerns for once. At a time when we are battling with high costs of food, fuel and electricity, the same government watches private companies demanding more from us. It is a pity. We expect better from our leaders. Things have become so terrible in this country that we can’t even get entertained again.”
Expressing different opinions, another Nigerian, Benjamin Adeyemo, asked fellow citizens to desist from blaming companies who hike their fees, rather, he advised them to channel their grievances to governments that have failed to fix the economy.
“We need to be sincere, in as much as I am not happy with the increments of DSTV, GOTV and even that of the electricity of late, I would like not to put all the blame on these companies. We voted governments to make the economy thrive so that these companies will not have reason to hike their services.
“For me, after the expiration of my subscription, I don’t think I will subscribe again because I am not getting any value from it. My friend just abandoned his GoTv and got a smart TV where he watches sports and movies on the internet. Some are using their PS5 console, downloading and subscribing to all streaming platforms available. They watch sports, movies with updated independent source news in real time as well. And there are enough animations for kids. These are some of the alternatives people are devolving.
“You would have noticed that some Nigerians are going for solar that could power their fridge, television and other electrical gadgets. As painful as it sounds, there will be a time when Nigerians will no longer depend on the government for anything,” he stated.
A public affairs commentator, Anthony Eludare called on the regulatory bodies such as the NCC and the Consumer Protection Council to investigate the rationale behind the price hikes.
Noting that the government has limited control over Multichoice, Eludare said that their prices could be regulated.
He said, “What citizens need from the government now are policies and actions that will restore hope. Many people are losing it daily due to starvation and joblessness and the least the government could do is to ensure that the situation is not provoked. All these increments can only lead people to revolt if care is not taken. Even when we often believe that Nigerians can endure anything, I want those in government to watch it and do the needful before it is too late. It is really getting out of hand.
“The same time the price of fuel is increasing, the electricity tariff has increased. Now, DSTV people are asking their subscribers to pay more.
Few days ago, I read that telecommunications operators are planning to jack up their prices. Lest not forget that things like electricity and entertainment are the ones still giving Nigerians causes to socialize and feel relieved once a while, taking these utilities from them will be an invitation to social unrest.
“I understand the fact that Multichoice is operating in a free market economy, and the government has limited control mechanisms in such. What people are complaining about is not primarily the price hike, but, the static content being provided, DSTV and GoTV have not improved on their services despite the plethora of increments over the years. This is where NCC and CPC should come in. They should justify the payments made, more so, why are they increasing now that diesel prices are coming down and the Naira is strengthening?”
Meanwhile, the acting CEO of the Federal Competition and Consumer Protection Commission, Adamu Abdullahi, has promised that the recent price increases in MultiChoice cable subscriptions will be reviewed by relevant stakeholders to ensure subscribers in Nigeria get value for their money.
He said on Sunday that the management of Multichoice has submitted a four-page letter to the commission explaining reasons for the recent hike in the price of its products, beginning from May 1, 2024
He said though the company remains a dominant provider of cable television in the country, the commission will not hesitate to wield its stick if the reasons are not justifiable.
He said, “Also yesterday (Saturday), we got a four-page letter from Multichoice telling us the reasons for the price increase. What we need to do is bring in the Nigerian Communications Commission, the sector regulatory agency and even the National Broadcasting Commission. We would look at the variables that caused the rise. At a glance, I saw things like the cost of electricity and the cost of dollars for spare parts. We would go through these items individually and find out how they have affected their operations.
“At the same time, they are not supposed to do so because you are the only provider of the services in the market and abuse your dominant position in the market. And if by chance we confirm that it is what they are doing, we would go by the law and do what we are supposed to do.”
Rising food costs
A random survey conducted by The Point showed that early last year, a gallon paint of egusi was N1, 500, today; it goes for N6, 500. A gallon paint of beans is now N6, 000; a Derica cup of rice is N1, 500 depending on the area of purchase and the quality. Garri, a paint bucket is now N2, 600; a kilo of frozen chicken is N5, 000 as opposed to N1, 600 which was sold last year, and a paint of crayfish now goes for N6, 000.
Medium-sized sliced bread, which was sold for N750 in January 2023, now sells for N1, 700. A piece of egg rose by 100 percent to N200 in January from N100 in the same period of 2023, while a crate of eggs now sells for N4,000 for large sizes as against N2,800 sold last year.
At Jolasco Market in Lambe, Ogun State, Mrs. Ajoke Enilolobo, who sells provisions, said that the price of 70g of instant noodles (Indomitable) rose from N3,000 sold early last year to N9000, while 120g Indomie noodles (Superpack) now goes as high as N12,300 as against N4,500 it was previously sold some years back.
At Ishaga Market, in Iju, Lagos, the story was the same as sellers of food items lamented a sharp drop in sales in recent times. One Alhaja Serifatu Ajagbe said many of the customers end up quarrelling with market women over arguments about the prevailing prices of commodities.
Buyers complained that prices of essential food items are getting beyond reach these days.
A family man, Philip Ochanja said he came to the market on Monday to buy some chickens to mark his daughter’s birthday but regretted that the prices were prohibitive and that he had to settle down for frozen fish since a small chicken was sold for N10, 000.
In separate chats with The Point, tales of lamentation among low income earners in the Federal Capital Territory remain a binding factor.
A petty trader in Kubwa, Abuja, Bello Aisha, who sells cooked food and runs a provision store alongside said, “I am just running the business.
Anything I see, I manage. What we voted for is what we are receiving.
“Pepper worth N4, 000 is no longer enough for me to cook in a day. Onions and other ingredients are expensive. Prices of bags of rice and beans have also gone up. We make little profit, compared to what we obtained before now. The government needs to come to our aid now as everything is very hard.”
Lamenting that things were getting worse, a tailor at Dei-Dei, Ezra Chukwu, said, “Everything is getting worse. If you buy anything today, if you go to the market tomorrow, it will increase. Even the price of fuel is compounding our problem, even electricity.
“In the past, we used to have electricity, which helped, but the reverse is now the case. I buy fuel at N700 or N800 per litre to work. That is not enough to get plenty of work done.”
On how he has been coping with the present reality in the country, Chukwu said he had no choice but to increase the prices of his services.
He said, “I had no choice but to increase my rates. I used to sew clothes between N2, 500 and N3, 000, but I can’t do that anymore; it has increased to N3, 000 and N4, 000. Some of my customers have complained, but if I don’t charge that amount, I can’t buy fuel to sew their clothes. I am just managing to feed. I don’t even know whether the situation will improve or not, but I pray it does.”
Motorists accuse marketers of hoarding fuel as scarcity persists
Many Nigerians have expressed displeasure over difficulty in purchasing Premium Motor Spirit, popularly known as petrol in some states in the country.
The affected persons including commercial and private vehicle owners, motorcyclists, artisans, accused marketers of hoarding fuel, a situation that has created artificial scarcity and inflation.
They claimed that some marketers intentionally close down their filling stations with claims that they don’t have supply, adding that the same stations open for business whenever their colleagues finish selling at increased prices.
Checks by The Point on Sunday in Osun, Ogun, Ondo, Kwara States revealed that the number of vehicles plying roads has reduced owing to difficulty in getting fuel at stations.
Few stations that were selling fuel sold between N7, 000 and N1, 000 per litre with huge crowds to attend to.
Some motorists and others struggling to buy the products at a filling station at Onababaona area of Osogbo on Saturday night were severely attacked and beaten by some soldiers who invaded the area.
In an attempt to clear the way and beat the long queue, the soldiers alighted from their patrol vehicle and flogged anyone on sight before they got to the petrol attendants.
The artificial scarcity has caused an increment in transport fares within Osogbo.
Commercial motorcyclists who used to charge between N150 and N250 for a drop now charge between N200 and N500 depending on the distance.
In an interview with a commercial driver who was among those waiting to purchase the product, Idris Adeyanju, he blamed marketers for the scarcity.
“Fuel marketers are not being patriotic. They are appearing very greedy. Since last week, petrol has reduced in price but these people (marketers) failed to adjust their price downward. Instead, they are rotating the selling of petrol among themselves. This station will shut down for some hours to enable the other to sell at a higher price before it will come to the turn of another person. They have this product in their tanks but because they want the price to remain high, they are hoarding it. This is not good for the economy,” he lamented.
It was gathered that vehicles have deserted roads in Ilorin, Kwara State capital as marketers refused to sell fuel.
“Fuel marketers are not being patriotic. They are appearing very greedy. Since last week, petrol has reduced in price but these people (marketers) failed to adjust their price downward. Instead, they are rotating the selling of petrol among themselves.”
A resident said, “Vehicles have deserted the roads in Ilorin as petrol vanishes. A friend is thanking God after he luckily finds a litter for N1, 500.”
“Between Akure and Ilesa, we didn’t find a filling station selling. We had to pay N7, 000 to buy 5 litres from a roadside seller at Ikeji Arakeji,” a traveler narrated.
A resident of Ogun State said, “We bought it at N900 per litre here in Ayetoro Ogun State.”
Meanwhile, the Osun State Government Taskforce on Petroleum Price Monitoring has warned owners of petrol stations across the state against hoarding petroleum products to create artificial scarcity.
In a statement by the Chairman of the Taskforce and the Chief of Staff to the State Governor, Kazeem Akinleye, the taskforce noted that its surveillance across the state revealed that most filling stations were hoarding petrol products, thereby worsening the fuel supply situation in the state.
The Chairman posited that surveillance activities were conducted in major towns and the state capital in the last three days and that it revealed deliberate hoarding of fuel to create artificial scarcity.
The Taskforce consequently issued strong warning to affected filling stations which are already listed as direct culprits to open up their tanks and dispense fuel to the members of the public.
The statement further tasked marketers to be public spirited in their pricing of petroleum products, reminding them of the already harsh economic situation on the members of the public.
“Failure to stop the fuel hoarding and take humanitarian notice of the prevailing economic situation in the country will lead to severe sanctions,” the statement warned.
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