Nitel's Ongoing Strike Bites Harder

In this report, Efem Nkanga, examines the recent strike action embarked upon by employees of the Nigerian Telecommunications Limited (NITEL), the negative impact the strike has had on the economy and the need for the Federal Government to declare telecommunication a critical sector of the economy.

The ongoing industrial action of employees of NITEL has continued to take its toll on the economy almost two weeks after the commencement of the strike, which was attributed to disagreements between Transnational Corporation, owners of NITEL and NITEL employees over the payment of salaries and emoluments.

The strike action, which has led to the shut down of SAT-3, the underwater communication cable link connecting Nigeria and many African countries to the rest of the world through Europe, has led to communication challenges that has continued to take its toll on the economy. Affected by the strike action are critical sectors of the economy spanning oil and gas, banking, the seat of government, security service, media houses, private telecoms operators (PTOs) and telecoms companies etc. Major conglomerates like Total and Shell are said to have been seriously affected by the strike action. Though NITEL is known for rendering epileptic services, it has a golden asset - SAT-3, which delivers capacity that links Nigeria and other participatory members of the project to major internet backbones across Europe, Asia and the Americas. The SAT 3 cable project connects Africa with Europe and is projected to be a major revenue earner for NITEL. THISDAY gathered that NITEL, which spent about $45 million in 2002 to co-own the facility, which runs through the Atlantic Ocean linking countries along the route, makes only about N100million as revenue every month while its salary structure on a monthly basis is about 500 million. It is this shortfall between the revenue it earns and its liabilities that has been its albatross.

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