Nigerians could experience increased costs for calls and data as telecommunication companies consider tariff hike.
Telecom operators in the country in response to economic challenges are cow considering spiking the prices of their services and this is inclusive of both voice calls and data.
Nigerians Could Experience Increased Costs for Calls
The Nigerian telecom sector faced significant financial challenges in 2023, with MTN Nigeria reporting a post-tax loss of ₦135 billion and Airtel experiencing a 21.96% revenue decrease. These losses were attributed to factors like currency devaluation and cable vandalism.
Despite economic headwinds, telecom operators in Nigeria have been unable to adjust their service pricing framework for over a decade due to regulatory constraints. The Association of Licensed Telecom Operators of Nigeria (ALTON) highlighted the disconnect between the current price control mechanism and economic realities.
Calls for Constructive Dialogue
ALTON emphasized the need for constructive dialogue between industry stakeholders and the government to address pricing challenges. Gbenga Adebayo, ALTON’s chairman, warned of the sector’s potential demise without tariff adjustments, citing increased taxes and levies as key factors impacting operators’ financial viability.
Infrastructure Protection Efforts
In response to the rampant cable vandalism affecting telecom infrastructure, the government is developing new regulations to protect critical infrastructure and impose severe penalties on offenders. This initiative aims to safeguard the industry’s stability and promote investor confidence.
Economic Downturn and Rising Costs
Amid an economic downturn, Nigeria has witnessed rising prices across various sectors. The recent upward review of electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC) and MultiChoice Nigeria’s price increases for DStv and GOtv further exacerbate consumers’ financial burdens.
Conclusion
As Nigeria’s telecom sector grapples with financial challenges and regulatory constraints, the need for tariff adjustments becomes increasingly evident.
ALTON’s call for constructive dialogue and the government’s efforts to protect telecom infrastructure highlights the urgency of addressing pricing challenges to ensure the industry’s sustainability amidst economic uncertainties.
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