Given Nigeria’s recent fuel subsidy removal, airtime’s new competition is fuel says Afena Capital as mobile-phone operator MTN Group posted their biggest two-day decline since January 2009 following the Nigerian Government’s fuel subsidy removal. As fuel subsidies are cut, consumers face the tough choice of either buying airtime or fuel the investment firm asserts.
“People will have to choose between buying phone airtime and paying for transportation as fuel prices climb”, said Khulekani Dlamini, Head of Research at Afena Capital.
Ending the subsidy will more than double petrol prices on the official market, and prices of other goods will climb because of the higher transportation costs. Transportation affects everything,” Dlamini said.
What do you think? Do you think the fuel subsidy removal will significantly affect the purchase of airtime by Nigerians?