- Telecom subscribers reject proposed tariff hike
Transactions on the floor of the Nigerian Exchange Limited on Tuesday ended the year on a negative note, with the All-Share Index declining by 0.22 per cent to close at 102,926.40 points from the previous 103,149.35 points.
The total market capitalisation dropped by N135bn, closing at N62.76trn, marking the final trading day of the year, according to data from NGX.
This brings the year-to-date gain to 37.01 per cent, the month-to-date gain for December 2024 to 5.47 per cent, and the week-to-date gain to 0.77 per cent.
An aggregate of 422.65m unit shares was traded in 8,427 deals, valued at N39.99bn, highlighting market activity despite the decline.
The market breadth closed positive, with 36 equities gaining while 28 equities recorded declines in share prices, reflecting a mixed sentiment among investors.
Topping the gainers chart, Prestige Assurance Plc, Beta Glass Plc, and Universal Insurance Plc each recorded a 10.00 per cent increase, closing at N1.21, N64.90, and N0.66, respectively. Okomu Oil Plc also advanced by 9.98 per cent, ending at N444.00 from N403.70, while Thomas Wyatt Plc gained 9.88 per cent, with its stock price rising from N1.72 to N1.89.
On the other hand, Union Dicon Salt Plc, Eterna Plc, and Champion Breweries Plc each recorded a 10.00 per cent loss, closing at N7.20, N24.30, and N3.81, respectively. PZ Cussons Nigeria Plc lost 6.90 per cent, dropping to N24.30 from N26.10, while Cadbury Nigeria Plc fell by 6.52 per cent, ending at N21.50 from N23.00.
In terms of trading volume, Access Corporation recorded the highest with 30.22m shares valued at N722.93m across 401 deals. Aradel Holdings Plc led the value chart, trading 21.62m shares valued at N12.91bn in 278 deals.
Other performers in value trades included Geregu Power Plc, which recorded 10.01m shares valued at N10.36bn, and Seplat Energy Plc, with 1.86m shares valued at N9.54bn.
The year ended with mixed investor sentiment, as gains in certain equities were overshadowed by losses in key stocks, reflecting cautious market activity amid economic uncertainties.
Telecom subscribers reject proposed tariff hike
Meanwhile, the National Association of Telecoms Subscribers has rejected the proposed increase in telecommunication tariffs, describing the plan as “insensitive” and a further burden on consumers already grappling with economic hardship.
The decision to reject the hike came after an emergency meeting held on Tuesday, where the association issued a communique outlining their objections.
The backlash follows signs that the Nigerian Communications Commission may approve the tariff increase requested by telecom operators.
A source within the NCC had on December 29 dismissed claims of a rumoured proposed telecommunications tariff hike allegedly set to take effect in January 2025.
However, on Tuesday, the telcos argued that the current pricing structure no longer reflects Nigeria’s macroeconomic realities, citing rising inflation, currency depreciation, and the dollarization of equipment costs.
They also pointed to the absence of tariff increases over the past decade and the growing financial burden from multiple levies imposed by various levels of government.
In the communiqué, signed by National President, Adeolu Ogunbanjo and National Secretary, Bayo Omotubora, NATCOMS criticised the NCC for considering the tariff increase.
“The NCC, as recently published in both the print and electronic media, approved the telecommunication service operators to hike their tariffs and the approved increment would see the current tariffs rise by about 40 per cent.
“This association considers the decision of the NCC as very insensitive and not in the interest of Telecoms Services Consumers. The unrelenting rise in prices of Goods and Services in the Country has made life extremely difficult for the generality of Citizens who are Consumers of Telecom Services. The new increment is therefore one additional burden too many,” part of the communiqué stated.
Under the proposal, the cost of voice calls would rise from N11.00 to N15.40 per minute, text messages would increase from N4.00 to N5.60, and the price for one gigabyte of data would climb from N1,000 to N1,400.
NATCOMS argued that these increases would exacerbate financial strain and reduce access to vital communication services for many Nigerians.
The association also raised concerns about the cumulative impact of taxes on telecom services. NATCOMS highlighted the excise duty introduced by the 2020 Finance Act, which was suspended following public outcry and is currently the subject of a legal challenge.
“The additional tax burden has already brought untold hardship to our members, many of whom have had to cut back on their telecommunication needs. The proposed tariff hike would only worsen the situation,” NATCOMS noted
The legal challenge, filed against telecom operators and federal agencies, questions the legality of the excise duty on grounds of double taxation. The case will be heard in the Federal High Court in Lagos on March 13, 2025.
While acknowledging the telecom operators’ concerns about rising operational costs, NATCOMS proposed alternative means of raising funds.
“Operators should consider listing their companies on the Nigerian Stock Exchange and offering public ownership,” the statement suggested. “This approach would generate the needed funds while aligning with public interest,” it added.
The association called on the NCC to withdraw the approval for the tariff hike and urged telecom operators to explore consumer-friendly solutions to address their financial challenges.
“With these proposed increases, two-thirds of telecom services subscribers risk being priced out of the market. This is a clear violation of the Nigerian Communications Commission’s duty to protect the interests of consumers,” NATCOMS concluded.
NATCOMS reiterated its commitment to advocating for policies that promote affordability and accessibility in the telecom sector.
