Nigerian telcos push for upward review of tariffs in view of economic challenges

Nigeria’s major telecommunication networks, led by MTN, Airtel and Globacom, have pushed for cost-reflective tariff in view of extant economic realities in the country.

The Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), made their position known on Thursday in a statement co-signed by ALTON’s Chairman, Gbenga Adebayo and ATCON’s President, Tony Emoekpere.

The telcos called upon the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry.

The telcos said telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.

“Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last (11) years, primarily due to regulatory constraints.

“For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.

“ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability,” the statement partly read.

Regarding the Nigerian Communications Commission (NCC), the telcos also said regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector.

“Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions,” the statement added.