Fuel Subsidy Removal Fallout: Expect To Pay More

Telecoms subscribers in Nigeria have been told to expect to pay more as a fallout of the recent fuel subsidy removal action by the government.

Of course, that is to be expected.

The President of ALTON (Association of Licensed Telecoms Operators of Nigeria), Gbenga Adebayo, had this to say:

“Reason being that even though the core of our power is generated by the use of diesel, all other support services are dependent on the PMS.

“Therefore, with the increase in the cost of PMS, it is foreseen that it will also affect the cost of doing business, meaning that it will affect the cost of network operations as well.”

I submitted this line of reasoning to someone just yesterday and he shut me up. But this is simple common sense. The cost of running any business simply goes up, even if that business is not directly dependent on petrol.

For example, telecoms operators run cars which burn petrol, and also purchase from the same market that will have experienced spiralling costs from all angles. How can their operations not be affected?

we will see how this plays out. But do think about it: all the gains of the last one year in terms of tariff reductions are about to disappear with this singular action of the federal government.

Have your say, dear friends!

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  1. izi January 7, 2012
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