Telecom operators push for tariff hike amid surging operating costs

The call for a tariff increase in Nigeria’s telecom sector has gained momentum, with Airtel Nigeria joining other industry players in advocating for a pricing realignment to address escalating operational expenses.

 Airtel’s Chief Executive Officer, Mr. Dinesh Balsingh, highlighted the pressing need for the upward review in an op-ed, citing over 300% increases in operating costs within the past two years.

 “For over a decade, tariffs have remained static despite the dramatic increase in operating expenses,” Balsingh stated.

He explained that maintaining high-quality service and meeting the growing demand for digital connectivity necessitates a pricing adjustment aligned with current economic conditions.

Balsingh pointed out that the telecom sector plays a crucial role in Nigeria’s digital transformation journey, driving advancements across education, healthcare, and banking.

However, sustaining and upgrading the infrastructure required for these services demands significant investment.

“These investments come at a cost, one that must be shared proportionally to guarantee long-term viability,” he noted.

Airtel’s position mirrors concerns expressed by MTN Nigeria’s CEO, Mr. Karl Toriola, who recently revealed that telecom operators had proposed a tariff increase of approximately 100% to the Nigerian Communications Commission (NCC).

While acknowledging the regulator’s sensitivity to the economic realities facing Nigerians, Toriola emphasized the urgent need for action to avoid jeopardizing the sustainability of the sector.

“We’ve put forward a request of approximately 100% tariff increases to the regulators. I doubt they’re going to approve that increase because they’re very sensitive to the current economic situation in the country,” Toriola said.

READ ALSO: Telecoms operators threaten to begin service shedding without tariff review – ALTON

Both executives stressed that the proposed tariff adjustments aim to ensure sustainability rather than drive short-term profitability.

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The push for tariff reviews is not limited to telecom operators. Two key industry associations, the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), have been advocating for upward adjustments for over two years. Both groups cite surging operational costs as a critical factor threatening the sector’s viability.

Balsingh underscored the potential benefits of a tariff adjustment, including expanded network coverage, improved service delivery, strengthened network security, and the introduction of advanced technologies.

“These changes would directly enhance connectivity quality for Nigerians while ensuring no one is left behind in the country’s digital transformation journey,” he said.

While the NCC’s decision on the proposed tariff hikes remains pending, the calls from telecom operators and industry associations underscore a growing urgency to address rising costs.

With the sector’s role as a backbone for Nigeria’s digital economy, stakeholders argue that sustainable pricing is critical for maintaining momentum in the country’s digital transformation efforts.

The coming weeks are expected to be pivotal as regulators, operators, and industry groups continue discussions on balancing economic realities with consumer affordability in Nigeria’s telecom market.