The Association of Telecommunications Companies of Nigeria (ATCON) has welcomed the Nigerian Communications Commission’s (NCC) approval of a 50% tariff increase for telecommunications services. While acknowledging that this falls short of their 100% request, ATCON believes the decision reflects the NCC’s understanding of the sector’s mounting operational challenges.
The telecommunications industry in Nigeria has been grappling with escalating costs for over a decade, driven by factors such as inflation, exchange rate fluctuations, and the substantial investments required to meet the growing demand for data and connectivity. This has significantly impacted operators’ profitability and threatened the sustainability of the sector.
“For over a decade, telecom tariffs in Nigeria have remained static despite escalating costs driven by inflation, exchange rate volatility, and the substantial investments required to meet growing consumer demand,” stated ATCON President, Tony Izuagbe Emoekpere, in a press release. “These challenges have put immense financial strain on operators, threatening the sustainability of the sector, which serves as a cornerstone of Nigeria’s digital economy.”
50% Increase a Step in the Right Direction
ATCON commended the NCC for its consultative approach and acknowledged that the 50% tariff adjustment, while not meeting the full extent of their request, represents a crucial step towards addressing the industry’s financial constraints.
“While the approved tariff adjustment, capped at a maximum of 50%, does not fully address the operators’ request for a 100% increase, we understand that this is a step towards bridging the gap between operational costs and revenues,” Emoekpere said. “This adjustment will enable operators to continue investing in infrastructure, expand coverage, and improve service quality for the benefit of all Nigerians.”
Focus on Service Quality and Consumer Benefits
ATCON emphasized that the primary objective of the tariff adjustment is to reinvest the additional revenue into enhancing network quality, expanding digital access, and delivering a superior customer experience.
“The association reassured Nigerians that the tariff adjustments would ultimately benefit consumers, as operators are committed to reinvesting the additional revenue into enhancing network quality, expanding digital access, and delivering a better customer experience,” the statement read. “These investments would translate into improved connectivity, wider coverage, and innovative solutions designed to meet the evolving needs of Nigerians.”
Awaiting Implementation Guidelines
The association is now eagerly awaiting the official Determination document from the NCC, which will provide detailed guidelines on the implementation of the new tariffs in accordance with the Nigerian Communications Act 2003.
“ATCON noted that its members are eagerly awaiting the official Determination document from the NCC, which is expected to provide detailed guidelines on the implementation of the new tariffs in line with the Nigerian Communications Act 2003,” the statement explained. “According to the body, this document will be instrumental in guiding operators and stakeholders on the implementation of the adjustments and the accompanying expectations.”
Continued Collaboration with the NCC
While expressing gratitude for the NCC’s efforts to balance the interests of both operators and consumers, ATCON urged the commission to maintain open and ongoing dialogue with the telecommunications industry to address the persistent challenges that hinder operational efficiency.
“While expressing gratitude to the NCC for balancing the interests of operators and consumers, ATCON urged the Commission to maintain open engagement with telecom operators to address ongoing challenges that hinder operational efficiency,” the statement concluded.
