50% Telco tariff hike: Labour suspends protest as govt agrees to set up review committee

Guardian Nigeria

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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.

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