Telecom operators in Nigeria are calling for an upward tariff review to counter the escalating costs of operation and investment in the sector.
After 11 years of tariff stability, the industry is facing significant increases in operational costs and investments in network expansion and upgrades.
In a joint statement from the Association of Licensed Telecom Companies of Nigeria and the Association of Telecom Companies of Nigeria obtained on Thursday, the associations urged the Federal Government to facilitate constructive dialogue with industry stakeholders.
They aim to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.
The statement reads, “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.”
ALTON and ATCON expressed concerns over willful vandalism, theft, and other challenges hindering the sector’s growth.
They called for the protection of assets and network infrastructure, urging the government to pass legislation designating telecommunications infrastructure as critical national infrastructure.
Telecommunications infrastructure plays a pivotal role in Nigeria’s national security and socioeconomic growth. The country faces multiple security challenges that require urgent actions, and attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services, resulting in significant financial losses for operators.
Regarding infrastructure deficits, ALTON and ATCON highlighted challenges such as multiple taxation, prohibitive right-of-way charges, inadequate electric power supply, and vandalism of telecommunications infrastructure.
On regulatory independence, the groups demanded the sustenance of independence in the regulatory landscape to safeguard against undue influence.
They stressed that regulatory neutrality and independence were crucial for a thriving telecommunications sector.
The associations reaffirmed their commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria.
The statement concluded, “By fostering a conducive regulatory environment, prioritising infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria’s telecommunications sector, driving economic growth and societal development.”
Meanwhile, investments in Nigeria’s telecommunications sector decreased to $134m in 2023 from $456.8m in the corresponding year, representing a decline of approximately 70.5%, according to the National Bureau of Statistics. Experts warn that depleting investments in the sector could challenge telecom companies to maintain or enhance the quality of their services.
