Rédaction Africa Links 24 with Guardian Nigeria
Published on 2024-04-17 03:50:55
The Nigerian economy has been facing challenges, leading to various sectors struggling to stay afloat. In the midst of this, the telecoms sector is also working to weather the storm by considering a possible increase in the cost of telecoms services. The Nigerian Communications Commission (NCC) does not have the authority to fix tariffs for operators but is working with a consultant, KPMG, to conduct a cost-based study on potential tariff hikes in the sector. This study aims to recommend a pricing structure based on economic variables in the operating environment.
The telecoms sector in Nigeria is valued at $76 billion and has contributed significantly to the country’s GDP. The sector has seen tremendous growth over the past 23 years, connecting 318 million telephone lines compared to only 400,000 NITEL lines. However, the sector is facing challenges, with calls for a review of the cost of telecoms services becoming more urgent in recent years.
The Association of Licensed Telecoms Operators of Nigeria (ALTON) has been advocating for a review of telecoms service prices to align with current economic realities in the country. They have highlighted challenges such as rising costs of diesel, vandalism, fiber cuts, multiple taxation, and inflation.
The recent increase in electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC) has further highlighted the need for a review of prices of goods and services, including telephony operations. Telecom operators have been struggling with escalating operational expenses, making the current prices set by the NCC unsustainable.
Despite the challenges, telecom operators have been hesitant to increase tariffs due to regulatory constraints. The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani Adebayo, has been urged to consider the industry’s plea for a marginal hike in tariffs to reflect the increased cost burden on operators.
In the past, attempts to hike tariffs were met with resistance, with former Minister of Communications and Digital Economy, Dr. Isa Pantami, cancelling an approval given by the NCC. The industry has been urged to explore legal avenues to challenge regulatory decisions that impede their operations.
Subscribers have expressed their willingness to accept a marginal increase in telecom tariffs, acknowledging the need for the industry to cover its operating costs. However, they emphasize the importance of maintaining good quality services and ensuring that any price hike is reasonable and does not stifle the industry’s growth.
In conclusion, the telecom industry in Nigeria is at a crossroads, grappling with economic challenges and the need for a tariff review. Stakeholders must come together to find a balanced solution that supports the industry’s growth while ensuring quality services for consumers. A collaborative approach and open dialogue will be crucial in navigating the complexities of the telecoms sector in Nigeria.
