Preparatory to the December festivities, customers accused the nation’s mobile telephone operators of suddenly hiking their recharge cards. But the operators denied, insisting the prices of the products remain that of their face values. BANKOLE SHAKIRUDEEN ADESHINA reports.
HOWEVER one looks at it, the success story of the Nigeria’s telecommunications sector has significantly strengthened the nation’s economy, boosted her international reputation and endlessly attracts foreign investors to the continent’s most populous nation.
With over 100 million active telephone lines now, competitively shared among the leading operators, MTN Nigeria, Zain and Globacom, the fortune of the growing industry is explained in its significant contributions to the nation’s Gross Domestic Products (GDP).
For instance, since 2005, the sector, has remained the third largest contributor to Nigeria’s GDP in the non-oil sector after agriculture and trade, beating banking, insurance, manufacturing and real estate sectors to it.
However, there have been overwhelming allegations of sharp practices levelled against the operators by users who accuse them of latching on the existing regulatory loopholes in the sector to defraud.
Findings revealed that consumers’ annoyance are that because there were no comprehensive models in place to determine telephone call charges and stiff sanctions for poor service delivery, telecommunications operators in the country, including MTN Nigeria, Zain and Globacom, have been having free days of extortion of innocent Nigerians.
Besides, there are also the issues of consistent intrusion of the privacy of customers through unsolicited messages, calls; imposition of paid callerztone on phone users and the unnecessary hike in prices of telephone recharge cards by the operators.
Investigations across Lagos metropolis show that retailers of mobile telephone recharge cards have since December last year hiked their prices.
The sum of N10, N20 and N50, have been added unto recharge cards, especially ones belonging to MTN Network that were hitherto sold for N100, N200, N400, N750 and N1,500, depending on the financial buoyancy of the residents of the area.
For instance, in Ajah, Victoria Island and Ikoyi, MTN recharge card of N400, N750 and N1,500 are now sold for N500, N800 and N1,600 respectively.
In Festac Town, the prices vary. Along Phase II, inward Amuwo Odofin, retailers inflate the price of the commodity according to the perceived buoyancy of the customer.
This writer last week bought MTN recharge card of N400 for N500 along Phase II, before the flyover bridge to 21 Road and interlink to First Gate, exiting to Mile 2-Okokomaiko road.
While waiting for his N500 balance, another customer, a dirty-looking apprentice from a construction site, emerged to purchase a recharge card of N200. He vehemently protested on knowing that he was to pay an extra of N20.
“Why do we have the extras, on the face values of the commodity”, this reporter asked.
“You are directing a right question to the wrong person,” replied the lady. “I’m selling what I have bought,” she insisted, adding, “and there is no way one would be so foolish to sacrifice her capital for the sake of customers’ complaints.”
The young lady who later identified herself as Bisola (surname withheld) said the massive unemployment in the country prompted her into the business and that issues like price hike and counterfeit recharge cards have been major challenges hindering the profitability of the business.
“What else do you want me do? I graduated in 2010 from the University of Ado-Ekiti; did my NYSC in Imo State in 2011 and practically looked for jobs for two years before settling down for this petty business to keep the body and soul together. I can’t steal, go into prostitution, defraud innocent people on the Internet and or go into armed robbery business,” she added.
Investigations in places like Ikeja, Ikorodu, Ikotun, Orile, Mile 2, Agbara and Ejigbo among others, further confirmed the hike, but with contradiction in causes.
For instance, this reporter found a uniform increment with seven retailers at the stretch of Mile 2, along Okokomaiko-Apapa Expressway.
According to findings, the real culprit behind the hike could be the independent producers of the commodity who may be hiding behind the traditional market inflation because of the end of the year festivities.
Also, an MTN licensed wholesale dealer told The Guardian on condition of anonymity that the real culprit of the hike are those affiliate distributors who want to latch on the yuletide inflation to make extra money on the commodity.
“As you can see, I’m a licensed merchant and I get my supply directly from the headquarters of MTN. As you can see, the price is normal here. And people even have excess profit. But then the truth is that MTN itself is not totally in control of the printing of its cards. There are some licensed merchants who have been causing some trouble over time.
“These merchants have been the constant headaches in the business. Sometime when the issue of fake recharge cards was raging, they were the people behind it. This time around, we hear that they want to take the advantage of the market inflation synonymous with the yuletide season to make some extra gains for themselves and this may be the reasons for the hike across the retail outlets in the state,” she added.
But reacting, MTN Nigeria has vehemently exonerated itself. The telecoms firm said that the face value of all its recharge card denominations remains the same.
General Manager, Corporate Affairs, Corporate Service Division, MTN, Funmilayo Onajide said the cost of every card remains the value of its worth.
“The cost of every recharge card is the value stated on it. Any third party selling recharge cards at a value at variance with the face value is acting illegally.
“MTN has a well-established distribution structure and all our authorized partners within this structure are obliged to adhere to this. Any variance from the authorized face value of recharge cards is without MTN’s authority,” she said.
Corroborating Onajide’s view, Corporate Services Executive, MTN Nigeria, Mr. Wale Goodluck, added: “We have not effected a price increase and the retail prices of the various denominations of our recharge cards and recharge vouchers remain the same.
“Any such hike is contrary to MTN’s wishes or knowledge. MTN has a well-established distribution structure and all our authorized partners within this structure are obliged to sell recharge cards at their face value. Any variance from the authorized face value of recharge cards is without MTN’s knowledge or authority.”
MTN said its 55 million customers could purchase airtime via recharge cards or recharge vouchers as well as through a virtual top up.
It explained that the airtime recharge options were generally distributed via a very extensive trade and distribution network, which has over the years, successfully enhanced accessibility to airtime and customer convenience.