29th April, 2024
By Yemisi Bamgbose
I was going through the social media last Friday, and I came across a story titled FCCPC to review the new price hike for DSTV and GOtv. FCCPC is the Federal Competition and Consumer Protection Commission.
What a wonderful way of protecting consumers’ interests.
I would have given FCCPC a thumb up if they had been intervening on price matters, most especially those that have direct bearing on the livelihood of the masses.
If the mandate of FCCPC includes price control of goods and services in a free and deregulated economy where was the organisation when Bakers Association in the country increased the cost of a loaf of bread more than 200% in the last one year. Bread is an essential commodity.
What took away the mandate of FCCPC to review the cost of the most staple food of the common man which Nigerians can no longer afford?
I doubt if FCCPC was aware that a sachet of pure water has been increased from five naira to twenty naira the last one year. Is the organisation on vacation?
Perhaps the organisation is on leave when bottling companies in the country astronomically increased the cost of malt and other soft drinks. I was surprised that FCCPC didn’t call stakeholders meeting to review the new prices.
Perhaps the cost of a bag of cement has not been increased from four thousand Naira in the last one year. That must be the reason why FCCPC did not deem it fit to invite Dangote,BUA and Lafarge cement manufacturers with relevant stakeholders to discuss the more than 100% increase on a bag of cement. Aviation sector, on a daily basis, increases the cost of domestic flights. This also has not attracted the attention of FCCPC.
In the education sector, I was wondering why FCCPC could not call for the review of the cost being charged by private educational institutions especially those charging in dollars in a country where Naira is the legal tender.
Anyway, on the part of broadcasting I want to assume that FCCPC does not know what goes into the business of broadcasting, perhaps, that could inform the decision of the agency to plan the proposed review of the increase in the price of DSTV and GOtv pay TV channels respectively.
He who wears the shoe knows where it pinches.
I would not blame FCCPC for inadequate information about the challenges confronting players in the broadcast sector more so that media practitioners are saddled with the responsibility of dancing the dance of other people and also mandated to carry loads of others on their heads while leaving their own luggage unattended.
There are free to air stations such as NTA, RADIO NIGERIA, AIT, SILVERBIRD CHANNELS,, STATE OWNED RADIO AND TV STATIONS, PRIVATE RADIO STATIONS etc where consumers don’t pay to listen to radio or watch television. There are subscription channels such as MULTICHOICE, GOtv, TNtv, STARTIMES etc where viewers pay to watch and listen.
There are choices.
During Covid-19 pandemic, stations burnt diesel without adverts or other sources of revenue for more than twelve months in national interest. The centre is yet to hold before the last straw that broke the camel’s back came in the name of subsidy removal from petroleum products as well as floating of the nation’s currency.
The challenge is that not many people buy diesel to run business and they can switch on and off as they want depending on their needs. They should not be blamed for not knowing what it means to buy a litre above one thousand five hundred naira. To several others, the removal of fuel subsidy affected the premium motor spirit only.
The cost of diesel rose from two hundred naira per litre in 2021 to one thousand seven hundred per litre in 2023/24, and broadcast stations have to transmit for twenty four hours changing from one generator to the other.
None of the national stations such as Channels TV, Arise, TVC,AIT, Silverbird, and NTA, amongst others, commits less than one hundred million Naira on diesel on monthly basis to keep their mandate of information, education and entertainment.
It may interest the public to know that many, if not all, of the national radio and television stations in Nigeria have not been able to break-even since 2020 when the nation’s economy was shut down as a result to Covid-19 pandemic. Why? Each network station that transmits 24 hours consumes not less than twelve thousand litres of diesel per week.
In Nigeria, we want everything free.
What subscribers pay to MultiChoice, Startimes, or any DTT and DTH is the quality of content of many channels brought direct to their homes or offices.
Its a business and there are choices.
For MultiChoice to provide coverage to the nooks and crannies of the country, it maintains over three hundred sites powered with diesel generating sets in each of the sites.
The public should also know that these PAYTV companies purchase all these contents that subscribers watch at the comfort of their homes and offices.
Those who cannot afford the services of MultiChoice and indeed any pay TV can decide not to subscribe, afterwards, there are many free to air television channels and content on satellites OVER THE TABLE (OTT)that can be accessed through free to air decoders and wifi.
I sympathise with everyone on the challenges posed by the removal of every known subsidy, including the stoppage of subsidy on electricity tariffs. The public should sympathise with the broadcast sector the more.
The President and indeed all those that contested for presidency made it clear before the election that they will do away with subsidy if elected to preside over the affairs of this country.
While not claiming that broadcasting is the worst hit, I can boldly say categorically that the broadcast industry is at least among the sectors that are severely affected by government policies without any form of palliative.
The question that will readily come to mind will be what is happening to the revenue derived from advertising. A recent research conducted by the Advertising Sectorial Group revealed that advert spends have considerably reduced in the last 10 years due to reduction in production, closure or exit of many companies from the country.
The economy is deregulated. If other services are allowed to increase their prices and for MultiChoice to continue rendering quality service, the limited liability company should be allowed to determine the price of its products.
The decision not to subscribe to the service should be left to the consumer after all it is not an essential commodity.
-Yemisi Bamgbose is the Executive Secretary, Broadcasting Organisations of Nigeria (BON)