The Nigerian Communications Commission (NCC) has mandated telecom operators to simplify and make their tariffs more transparent following the recent 50% tariff increase in the telecommunications sector.
Rationale Behind the Tariff Review
According to Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), the adjustment was necessary to sustain the industry amid rising operational costs and inflation.
> “For 12 years, telecom tariffs remained unchanged despite surging costs of diesel, energy, and other essentials. Without this review, the industry risked collapse,” Adebayo explained during a national television interview on Tuesday.
Regulatory Compliance & Market Forces
Adebayo emphasized that the NCC does not set prices but ensures they align with market realities. He noted that the tariff hike followed due process, including comprehensive discussions with the government and regulators.
Promises of Improved Service Quality
The ALTON chairman assured Nigerians that the adjustment would lead to better network services, including:
✔ System upgrades to enhance performance
✔ Infrastructure improvements to reduce downtime
✔ More transparent tariffs for consumer clarity
> “We are taking immediate steps to improve service delivery and optimize network performance. This review provides an opportunity to invest in infrastructure and enhance user experience,” he added.
Foreign Exchange & Industry Growth
Adebayo also highlighted the impact of foreign exchange fluctuations on telecom operations. He called for a stable currency market to facilitate foreign investments and support the sector’s expansion.
> “Many of our financial obligations were contracted at previous exchange rates, but they must now be serviced at much higher costs. A stable forex market will help attract investors and drive growth,” he stated.
Call for Public Understanding
Acknowledging concerns from consumers, Adebayo urged Nigerians to recognize the economic realities driving the tariff adjustment.
> “The cost of nearly everything has increased in the last 24 months. The telecom sector, which supports commerce, banking, education, and health, must remain viable for national development,” he concluded.
Looking Ahead
With the industry on a path to recovery, stakeholders remain optimistic that the tariff review will restore investor confidence, create jobs, and foster economic transformation.
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