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Telecom companies in Nigeria are asking for higher charges on calls, data, and SMS. They say the increase is necessary to cover the rising costs of running their businesses, especially with inflation and the falling value of the Naira.
Engr. Gbenga Adebayo, head of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), explained that Nigeria’s telecom sector has grown quickly, and people are more dependent on mobile networks than ever before. These services are used for everything from basic communication to banking and entertainment, and even new technologies like AI.
However, Adebayo warned that focusing on new services and ignoring the infrastructure behind them could hurt the industry. He stressed the need to keep investing in telecom networks, which have evolved from 2G to 5G, helping to bring about major innovations.
Adebayo also highlighted the financial struggles of telecom companies, mentioning that MTN and Airtel have reported losses due to factors like the high cost of diesel to power telecom towers and other challenges like inflation, taxes, and theft of equipment. He cautioned that without raising tariffs, companies might not be able to maintain or improve services.
Tony Izuagbe Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), agreed with Adebayo, pointing out that the telecom industry hasn’t raised its prices in the last 11 years. He called for a solution that balances the needs of consumers with the financial health of telecom companies.
Despite these requests, the Nigerian Communications Commission (NCC) has stated that no tariff hikes will be approved without conducting a thorough study of the costs involved. The NCC said it will only allow increases if they are necessary and fair to consumers, and if they support healthy competition in the industry.
The NCC reassured Nigerians that telecom companies cannot raise their prices on their own. Any tariff changes must first go through regulatory approval. The Commission stressed that it is committed to protecting consumers, as required by law, and ensuring that any changes are justified and sustainable.
In the end, while the telecom companies have reasons for wanting higher tariffs, the NCC has made it clear that no price increases will happen without proper review and approval.
