- Telecom operators delayed tariff increases due to misunderstandings about their request; the NCC denied the proposal, citing political reasons.
- The proposed increase included a 40% rise in call rates, SMS, and data charges, justified by rising operational costs and economic challenges.
- ALTON urges government support for removing VAT on diesel and addressing infrastructure permit issues in Abuja to improve service quality.
Telecom operators in Nigeria have put a hold on their bid to increase end-user tariffs for voice calls and data. This decision follows confusion about their intentions. The operators, represented by the Association of Licensed Telecom Operators of Nigeria (ALTON), had sought approval from the Nigerian Communications Commission (NCC) for a tariff adjustment due to rising operational costs.
The NCC denied their request, citing political reasons. As a result, the operators decided to delay their push for higher tariffs. A source explained that the proposal was misunderstood as a political move against the government. “We have suspended our request because it was seen in a political light,” the source said. “We are focused on business, not politics. We need sustainable tariffs to stay viable. We don’t want to go back to the NITEL era.”
The proposed tariff hike about two years ago included a 40 per cent increase in call rates, SMS costs, and data charges. This would raise the price floor for calls from N6.4 to N8.95 and SMS charges from N4 to N5.61. The operators justified the increase by citing a 40 per cent rise in operational costs due to Nigeria’s economic challenges and the Ukraine/Russia conflict.
The NCC’s denial was reportedly due to political considerations. In response, the operators have called for other regulatory changes. They have urged the government to eliminate the value-added tax (VAT) on diesel, which is crucial for powering telecom infrastructure.
Two subscriber groups have different views on the proposed tariff increase. Deolu Ogunbanjo of the National Association of Telecom Subscribers of Nigeria (NATCOM) supports a modest increase, noting that tariffs have not changed in over a decade.
On the other hand, Sina Bilesanmi from the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS-Nigeria) believes that service quality should improve and stakeholder engagement should be prioritised before any tariff hikes.
ALTON Chairman Gbenga Adebayo has highlighted the significant rise in operational costs. He pointed to inflation, currency devaluation, and increased energy prices. Adebayo has called for supportive policies, including recognising telecom infrastructure as critical national infrastructure. This recognition would help reduce costs related to infrastructure damage and theft.
Adebayo also urged the government to make the VAT suspension on diesel permanent. He noted that the recent VAT suspension is beneficial but should be extended indefinitely. Furthermore, he criticised the Federal Capital Development Authority (FCDA) for denying permits for new telecom sites in Abuja. This has impacted service quality and infrastructure development in the Federal Capital Territory (FCT).
ALTON continues to advocate for a balanced solution that addresses their financial pressures while ensuring fair service delivery and effective stakeholder engagement. The telecom operators are seeking a resolution that supports both their operational needs and the interests of consumers.