When Airtime And Fuel Become Luxuries: A Sobering Reflection On Nigeria’s Economic Crisis

BY ISAAC ASABOR

The Nigerian economy has always been a topic of deep concern, often marred by
inflation, unemployment, and fluctuating exchange rates. Yet, the current economic
situation seems to have taken an unprecedented toll, stretching the limits of survival for
both individuals and businesses alike. This became even more apparent when, recently,
telecommunications operators in Nigeria raised an alarm over the deteriorating
economic conditions under which they are forced to operate. The industry, which serves
as the backbone of modern communication and commerce, is feeling the heat of an
economic inferno that threatens to consume not just their profits but their very
existence.

The Chairman of the Association of Licenced Telecommunications Operators of Nigeria
(ALTON), Engr. Gbenga Adebayo highlighted this during the 93rd Telecom Consumer
Parliament is organised by the Nigerian Communications Commission (NCC) in Abuja.
According to him, telecom operators are struggling to stay afloat in a harsh economic
environment, with increased operational costs and dwindling consumer purchasing
power. The calls for an increase in tariffs to help sustain the industry reflect just how
dire the situation has become. Yet Adebayo was quick to stress that any increase in
tariffs must be done with caution, ensuring that the already burdened consumers do not
bear the brunt of this decision.

Telecommunications is not merely a service but a critical infrastructure that supports
every facet of the economy. When an industry as vital as telecom starts to flounder, it
sends shockwaves across other sectors. The fact that telecom operators are
contemplating tariff increases as a last resort to remain operational should set off alarm
bells for policymakers.

The plight of telecom operators, however, is only one piece of a much larger puzzle.
Adebayo’s observation that Nigerians who once comfortably recharged their phones
with ₦5,000 or ₦10,000 are now resorting to ₦200 or ₦300 speaks volumes. It is a stark
reflection of the shrinking disposable income of average Nigerians. For many, phone
calls, internet access, and data subscriptions are not just luxuries but necessities in
today’s digital world. The reduction in spending on these essential services suggests
deeper economic malaise where even middle-class families are forced to tighten their
belts.

The telecom sector, like many others, is grappling with rising operational costs due to
inflation, a depreciating naira, and the high cost of diesel needed to power base stations
amid erratic power supply. These challenges are not just affecting the profitability of
telecom companies but also threatening the sustainability of services that millions of
Nigerians rely on for their daily lives, businesses, and livelihoods. The government must
take urgent steps to address the root causes of this economic downturn before these
industries collapse under the weight of systemic neglect.

The economic distress is not limited to telecom operators alone. In a similar vein,
professional colleague narrated the story of a businessman who once had the luxury of
filling his tank with fuel every other day. Today, that same businessman is reduced
to buying just a few litres at a time. This shift from abundance to scarcity is a testament
to the harsh economic realities facing Nigerians.

The average Nigerian household is experiencing the ripple effects of rising fuel costs.
which not only affect transportation but also impact food prices and other essential
goods. The high cost of diesel has forced businesses to cut down on operations, with
some even shutting down completely. Small business owners who depend on
generators for electricity are particularly hard-hit, as they face skyrocketing expenses
that eat into their already thin profit margins.

The reduction in fuel consumption by private citizens and businesses alike is a clear
indication that purchasing power is dwindling. When people can no longer afford to fuel
their cars or power their generators, it is a sign that the economy is nearing a breaking
point.

What is more alarming is that this trend is happening at a time when Nigeria, as
one of Africa’s largest oil producers, should ideally be benefiting from its natural
resources. Instead, ordinary citizens are suffering from the paradox of plenty, where the
wealth of the nation’s resources fails to trickle down to the people.

The situation calls for urgent and decisive action from the government. It is clear that
the country’s economic woes are not just cyclical but structural. The government must
take proactive steps to address the factors that are driving businesses to the brink of
collapse and pushing millions of Nigerians into poverty.

In fact, not a few economic experts have averred that the continuous depreciation of the
naira is a major driver of inflation, and that import-dependent sectors like
telecommunications are particularly vulnerable to exchange rate fluctuations. They have
also added that government should work with the Central Bank of Nigeria (CBN) to
stabilise the naira and ensure that businesses can access foreign exchange at
reasonable rates.

In a similar vein, not a few experts have been heard saying that the cost of diesel has
become a significant burden for businesses, especially in the absence of reliable
electricity, and that investing in the power sector to ensure stable and affordable
electricity supply will alleviate some of the operational costs that are crippling
businesses.

Against the foregoing backdrop, it is expedient to opine that while the removal of fuel
subsidies was intended to free up government revenue, it has had severe
consequences for ordinary Nigerians. Therefore, suggestions have been made that the
government needs to explore targeted subsidies or alternatives that can cushion the
impact on those who are most vulnerable.

Not only that, there have been calls on the need to boost local production. Therefore,
reducing the country’s reliance on imports by supporting local industries will create jobs
and reduce the pressure on foreign exchange reserves. This, they said, can be
achieved through incentives for local manufacturers and investments in critical sectors
like agriculture and technology.

In a similar vein is the call for social welfare programmes. Proponents of the foregoing
variously averred that to directly address the suffering of the masses, the government
should expand social welfare programmes that provide relief to low-income households,
saying that the distribution of palliatives, food subsidies, and cash transfers could go
long way in easing the economic burden on Nigerians.

In fact, the current state of the Nigerian economy is unsustainable. The warning signs
are everywhere, from the dwindling airtime purchases to the inability of citizens to afford
fuel. The narratives shared by telecom operators and everyday businessmen paint a
bleak picture that cannot be ignored.

There is no doubt that Nigeria is at a crossroads. The government must choose to either
take bold steps to reform the economy or risk a complete collapse that could have far-
reaching consequences for generations to come. It is not enough to issue statements
and make promises; Nigerians need to see concrete actions that will improve their lives.
The economic challenges are complex, but they are not insurmountable. With the right
policies, political will, and a focus on the welfare of the people, Nigeria can chart a path
to recovery. The government must remember that while they deliberate, the people are
suffering. Every day that passes without meaningful intervention pushes more Nigerians
into poverty and despair.

At the end of the day, these stories, from telecom operators struggling to stay in
business to ordinary citizens rationing fuel are not just statistics; they are the lived
experiences of millions of Nigerians. The narratives shared by Engr. Gbenga Adebayo
and others should serve as a wake-up call for the government to act swiftly and
decisively.

There is a need for empathy-driven policies that prioritise the well-being of the
populace. The government must understand that when people can no longer afford to
recharge their phones or fuel their cars, it speaks volumes about the state of the
economy. It is time to stop the rhetoric and start implementing policies that will bring
about real change.The clock is ticking, and the people are waiting.