ATCON applauds FG’s move on telecom tariff hike approval

The Association of Telecommunication Companies of Nigeria (ATCON) has commended the Federal Government’s decision to increase call and data tariffs while pledging significant investment in the sector’s infrastructure.

The announcement, made on Wednesday by Dr. Bosun Tijan, Minister of Communications, Innovation, and Digital Economy, marks a pivotal shift in addressing longstanding challenges in Nigeria’s telecom sector.

ATCON President Tony Emoekpere described the tariff increase as long overdue and a necessary step for the sustainability of the telecom industry.

Speaking in Lagos on Thursday, Emoekpere emphasized that while a 100% tariff hike may seem substantial, it reflects the stagnation of rates over many years.

“Telecom tariffs have remained stagnant for too long, despite rising operational costs,” Emoekpere said. “Although a 100% hike may seem significant, it is not excessive considering the delay. Implementing this hike in the first quarter allows Mobile Network Operators (MNOs) to plan effectively.”

Emoekpere acknowledged the government’s decision to opt for a smaller tariff increment, as noted by Minister Tijan. However, he stressed the importance of periodic reviews to ensure that telecom operators can sustain quality service delivery.

The Federal Government’s commitment to invest in telecom infrastructure was also lauded by ATCON. Emoekpere highlighted that in advanced economies, government investment in critical infrastructure is standard practice.

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“Telecommunications is a critical national infrastructure, and government involvement is vital,” Emoekpere said. “With government investment, we can expect improved protection of telecom assets, which have long been vulnerable to vandalism.”

The ATCON president pointed out that the lack of government interest in telecom infrastructure had led to widespread vandalization. “This move signals a turning point. Government involvement will not only enhance connectivity but also reduce vandalism to the barest minimum,” he added.

During a stakeholder meeting with MNOs in Abuja, Dr. Tijan confirmed the tariff adjustment while ensuring that the hike would not reach the 100% initially requested by operators. He assured Nigerians that the Nigerian Communications Commission (NCC) would soon approve and announce the new tariffs.

Dr. Tijan also outlined the government’s strategic plans to deepen connectivity by investing in critical telecom infrastructure. “This investment will improve access to digital services, support economic growth, and enhance the resilience of our telecom networks,” the minister stated.

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Dr. Sarah Olayemi, an ICT policy analyst, commended the move, calling it a “step in the right direction” for a sector grappling with high operational costs and infrastructure deficits.

“The tariff hike will enable telecom operators to manage costs and invest in service improvements,” she noted. “Simultaneously, government investment will address infrastructure gaps and ensure that telecom services reach underserved areas.”

However, she cautioned that the government must strike a balance between affordability and sustainability. “The implementation must consider the economic realities of average Nigerians while ensuring the sector remains viable.”

The tariff adjustment and infrastructure investment are expected to have far-reaching effects on Nigeria’s telecom landscape. Improved connectivity, reduced infrastructure vandalization, and enhanced quality of service are anticipated outcomes.

With the Federal Government’s active involvement, stakeholders are optimistic about the sector’s growth potential. However, they emphasize the need for consistent policy implementation and collaboration between the government and private operators to achieve long-term success.

The telecom industry, a critical driver of Nigeria’s digital economy, may be on the cusp of transformation, but the success of these initiatives will depend on careful execution and sustained commitment from all stakeholders.