Telecommunications operators in Nigeria have called on subscribers to support the recent telecom tariff adjustment approved by the Nigerian Communications Commission (NCC). They claim it is a strategic move to ensure the long-term sustainability and resilience of the sector.
Speaking at the “Forum with Telecoms CEOs” in Lagos, the President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Mr. Gbenga Adebayo, underscored the critical need for a viable and sustainable telecom industry. He also highlighted its fundamental role in driving economic growth and infrastructure development.
Adebayo stressed that the tariff review is not profit-driven but rather a necessary step to safeguard the sector’s ability to maintain and expand services.
“In all our discussions, the focus has not been on profit margins but on the sustainability of the industry. A stable and thriving telecom sector is essential for economic development and the expansion of critical infrastructure,” Adebayo stated.
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Rising Operational Costs and the Need for Telecom Tariff Review
He emphasized that telecom operators must continue to invest in network expansion, service quality improvements, and technological advancements. These are objectives that are becoming increasingly difficult to achieve amid rising operational costs.
Telcos have faced escalating costs due to macroeconomic factors, including the rising price of diesel, inflation, and foreign exchange volatility. Adebayo pointed out that these challenges necessitated the recent tariff review, ensuring that operators can continue delivering reliable and high-quality services.
He also noted that if cost pressures were to shift significantly, the industry might need to reassess pricing models to maintain service continuity.
Adebayo advocated for a market-driven pricing approach, arguing that price regulation, as seen in other sectors such as electricity, has often resulted in inefficiencies and suboptimal outcomes.
NCC’s Role in Fostering Competition and Efficiency
Similarly, the Chief Corporate Relations Officer of the NCC, Mr. Tobechukwu Okigbo, highlighted the regulator’s role in fostering competition and efficiency within the industry. He noted that previous regulatory efforts had led to significant reductions in telecom costs. For instance, the drastic drop in SIM card prices from ₦14,000 to near zero.
The Director of Product Innovation and Business Development at 9mobile, Mr. Kenechukwu Okonkwo, addressed concerns over data consumption, emphasizing the importance of consumer education in managing data usage efficiently. He noted that factors such as automatic downloads from messaging apps and background data consumption significantly impact user experience.
“Telecom operators are committed to educating consumers on best practices for managing data usage, ensuring they maximize value while maintaining transparency in service delivery,” Okonkwo stated.
Telecom Industry Growth and Regulatory Support
Femi Adeniran, Director of Corporate Communications and CSR at Austell Nigeria, emphasized the vast opportunities within Nigeria’s telecom sector, given the country’s large population and growing digital economy. He stressed the need for regulatory policies that support industry sustainability while ensuring fair competition and consumer protection.
“The priority should be on expanding access, enhancing service quality, and fostering innovation while ensuring that pricing structures reflect the realities of the industry,” Adeniran remarked.
The NCC recently approved a 50% tariff adjustment, significantly lower than the 100% increase requested by operators. The commission stated that the decision was reached after extensive stakeholder consultations. It was necessary to maintain network investment, service quality, and infrastructure expansion.
“While we acknowledge the economic pressures on Nigerian households and businesses, a sustainable telecom industry is essential for national development. These adjustments will enable operators to continue investing in critical infrastructure and innovation,” the NCC stated.
The commission assured subscribers that the tariff adjustment would lead to improved network quality, enhanced customer service, and broader coverage nationwide.
Ensuring Long-Term Industry Stability
As Nigeria’s digital economy expands, the sustainability of the telecommunications sector remains paramount. Industry leaders emphasize that a viable pricing model is crucial for continued investment in infrastructure, improved service delivery, and long-term industry stability. The recent tariff adjustment, while necessary, is ultimately aimed at ensuring that Nigeria remains at the forefront of digital connectivity and economic growth.
