By The federal government has not responded to the request from telecom companies to raise service tariffs. Nearly two weeks ago, the Association of Licensed Telecom Companies of Nigeria (ALTON) and the Association of Telecom Companies of Nigeria (ATCON) asked the government to approve the increase due to the challenges of doing business, including the forex crisis and rising costs.
The telecom companies say that despite these difficulties, they have not raised their prices in the past 11 years because of regulatory rules. They argue that the current price controls are not in line with the economic situation, which could threaten the industry’s future and scare off investors.
However, the government has not commented yet, which may suggest they are hesitant to approve the increase, especially considering the financial pressure already being felt by Nigerians. A source from the Nigerian Communications Commission (NCC) said the government may hold off on the decision until a study is done to fully understand the impact of the proposed price hike.
Telecom companies like MTN Nigeria and Globacom have requested the tariff increase because of losses caused by foreign exchange issues and rising energy costs. This request follows a trend in other sectors, where companies like MultiChoice have raised prices. The telecom associations have called for the government to work with them on a solution that balances both the needs of consumers and the financial health of telecom companies.
Despite the economic challenges, the telecom industry is one of the few sectors that has not raised its prices in recent years, pointing to regulatory barriers. In the past, former Minister of Communications and Digital Economy, Prof. Isa Pantami, rejected similar proposals for a tariff hike. ALTON’s chairman, Gbenga Adebayo, stressed the need for pricing that reflects actual costs, warning that without it, investment in the sector could fall, and infrastructure could degrade. The sector’s investment dropped significantly in 2023, down by 70.5% compared to the previous year.
