Emergency rule: How telecoms operators, traders lost billions

Few days after the commencement of military operations, telecoms services went off and since then, millions of MTN, Glo, Airtel and Etisalat subscribers in the affected states have been held incommunicado until penultimate week.Though services were restored in Yobe and Adamawa states over a week ago, in Maiduguri it was for a brief period of […]

Few days after the commencement of military operations, telecoms services went off and since then, millions of MTN, Glo, Airtel and Etisalat subscribers in the affected states have been held incommunicado until penultimate week.
Though services were restored in Yobe and Adamawa states over a week ago, in Maiduguri it was for a brief period of two hours on Friday. Jubilations heralding the restoration were hardly over when signals went off again.
An executive member of Association of Licensed Telecommunication Operators of Nigeria (ALTON) told our reporter that the operators lost ‘conservatively’ N15bn.   
The ALTON executive member, who pleaded anonymity, said they agreed to the phone cut in the overall interest of the country.
“My brother, let me tell you: no operator would tell you the exact amount it has lost due to the shut in service in those states. But I can say we have all lost N15billion conservatively.
“Just take it this way: if, say, an operator has 3million subscribers in the states and each subscriber spends at least N500 per month, then multiply 500 by 3million,” he said, adding that even against the background of this huge loss, the operators are happy that the government is succeeding in the fight against insurgents.
“Thank God we are restoring networks now, nothing is too big to sacrifice for peace,” he said.
When asked whether subscribers will be compensated, the ALTON executive member, who is also a management staff of one of the leading operators, ruled out the issue of compensation.
Questions sent via email to all the Public Relations handlers of MTN, Airtel and Etisalat were not responded to.
One of the Glo officials who pleaded not to be named said: “Please we don’t have the figure in our department. Give us time to make enquiries.”

Service shut brought down Yobe economy
From Damaturu traders and other businessmen in the state complained bitterly over the difficulties and losses recorded as a result of the seizure of telephone communications.
Mudu Baana, a trader at Bayan Tasha market, Damaturu told our correspondent that the situation had cost traders a lot, something which also had multiplier effect on the cost of goods at the retail level.
“Before the seizure of the telecom services, we use to place order using less than N200 recharge card but with that development, we paid transport fare or fuel our cars and spent the whole day travelling to get supplies for Damaturu, probably the next day,” he said.
“Many traders have given up their trades due the enormous challenge posed by lack of network in addition to curfew. Many traders could not communicate with suppliers in Kano. Some of us spent the whole day to link up with the dealers,” he said.
Malam Samaila Magwaram, a mechanic and a spare parts dealer in Damaturu, told Daily Trust that he spends more than 20 percent of the cost of a spare part on transportation before it arrives in Damaturu.
“So, you would not expect us to sell it close to the market price. Many people have parked their vehicles here; the spare parts are not available and they cannot afford to pay for the incurred expenses to supply parts from Kano,” he said.
Muhammed Nuhu, a recharge card dealer in Damaturu, said he cannot tell how many of his collegues were kept out of job.
“I have over twenty distributors of credit card, and in Damaturu alone there are over 1000 registered voucher card selling points. Married women are into this business and many other people with little capital, but today virtually all of them have given up,” he said.
Nuhu recalled that he use to make N400,000 daily before the service seizure, but he now dips into his capital to feed his family.
“Even now that network is restore, the business is not encouraging because few people come to buy the recharge card.”
He said that many recharge card sellers that have enough capital have left to neighbouring states to continue with the business while some invested in some other trades.  
 Alhaji Mahmud Alhaji Umar Soso, a recharge card dealer in Gashua told our correspondent that the situation had reduced him to road side engine oil seller.
“Before the cell phone seizure, I made over N500, 000 from daily transaction, but within the first week I realized that I was eating from my capital so I started selling engine oil to save my capital.”
Again, GSM signals go off in Maiduguri
Our correspondent reports that in Maiduguri there was jubilation on Friday when hand held telephones started receiving signals around 9.30am only for it to disappear two hours after. The joy turned to sadness.
Many residents have expressed reservation over the development, lamenting why it was taken away even as people in Adamawa and Yobe States are now interacting with the outside world with their handheld devices.
“It is now over 72 hours when the network set in and disappeared. Since then, no signals at all, and there have not been explanation from anybody,” said Mustapha Kaka, a resident of Maiduguri.
Mustapha lamented that many businesses have crumbled following the disruption of GSM services on 16 May, 2013, two days after the declaration of State of emergency in the three north eastern states.
Hajiya Binta Ali, who sells textile materials at the Maiduguri Monday Market, said the seizure of GSM services has shut the prices of goods up.
 “When there was network, we only called our suppliers in Kano to place order. The suppliers would send the consignment through the Borno Express and we would simply deposit their money in their account. Now, the situation has changed,  we have to travel all the way to Kano or Aba in Abia State, lodge in a hotel and spend money on so many overheads,” she said.
Many recharge card vendors in Maiduguri and environs have resorted to selling sachet water, biscuits and oranges.
 Shittu Aliyu said, “It is very difficult to adjust from selling recharge card to sachet water. I hope the relevant authorities will look at our pains.”
Spokesman of the Joint Task Force, Lt Col Sagir Musa, told journalists in Maiduguri yesterday, that the decision on GSM services can only be announced at the Defence Headquarters Abuja.
Daily Trust reporter, who was in Konduga local government, 35 kilometers away from Maiduguri reports that life has been difficult for the locals.
Apart from the absence of GSM network, highways have been blocked by security operatives for almost two months. Locals have to travel over 250 kilometres through Bama and Dikwa before coming to Maiduguri to buy essential commodities.
 A top security source said Maiduguri- Konduga- Bama- Gwoza road as well as Maiduguri- Damboa-Biu-Gombe roads were blocked in order to stem activities of the Boko Haram insurgents who strike and melt into the nearby Sambisa Forest.