Telecom Tariffs in Nigeria Set for Increase Amid Industry Challenges
In a recent announcement, Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, revealed that an increase in telecom tariffs is forthcoming, although it will not reach the proposed 100 percent sought by operators. Tijani made this statement during an interview with journalists, as featured in a video by Channels TV on X (formerly Twitter).
Telecom companies have formally requested a 100 percent tariff hike due to mounting operational expenses, which include inflation and rising costs associated with service delivery. This proposal has been submitted to the Nigerian Communications Commission (NCC) for consideration.
After a stakeholders’ meeting held in Abuja, the minister stressed the need for robust regulations to ensure the sustainable growth of the telecommunications sector. He emphasized the importance of achieving a balance that supports the industry while addressing the global inflationary pressures that impact both operators and consumers alike.
“The decision has been made to increase telecom tariffs, but it will not be by the proposed 100 percent. A comprehensive review of the commissioned study is ongoing, and directives will be issued by the Nigerian Communications Commission to strike a fair balance. This effort is focused on protecting Nigerian consumers while allowing telecom companies to continue their significant investments,” Tijani explained.
The minister outlined various key initiatives that are under discussion, including the enforcement of an executive order to protect telecommunications infrastructure and enhancing local content within the industry. These initiatives are part of a broader strategy aimed at maintaining the sector’s vital role in Nigeria’s economic development.
Tijani acknowledged the pressing demand from telecom operators for substantial tariff adjustments, attributing this need to escalating operational costs. He noted that the government is actively working on strategies to reduce the adverse impact of these tariff hikes on the Nigerian populace.
“The study we have commissioned is helping us to identify ways to sustain the sector while minimizing hardship for our citizens. Even in the face of challenges, we are developing strategies to ease the situation,” he said.
Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, recently described the telecom sector as being “under siege,” due to soaring operational costs attributed to inflation, fluctuating exchange rates, and rising energy prices. He pointed out that, despite these challenges, tariffs have not changed, which is leaving operators struggling to maintain quality services and expand their networks. Without an immediate adjustment to tariffs, Adebayo warned that telecom operators might resort to service cuts, causing limited availability of services in certain areas.
Likewise, Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, indicated that operational costs have risen by over 300 percent in the past 18 to 24 months, making tariff adjustments crucial for the long-term sustainability of the telecom sector. Balsingh argued that the proposed tariff revisions are essential for ensuring the sector can continue to provide high-quality services and meet the growing demand for digital connectivity.
“For over a decade, tariffs have remained stagnant despite a dramatic increase in operational expenses. To keep delivering exceptional service and meeting the growing needs for digital connectivity, we must align our pricing structure with the economic realities we face,” Balsingh stressed.
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