The Association of Telecommunications Companies of Nigeria (ATCON) has commended the industry regulator’s decision to approve tariff adjustments for telecoms operators by capping the increase at a maximum of 50%.
In a similar vein, the Association of Telecommunications, Information Technology, Cable Satellite Network Operators and Allied Services Employers of Nigeria (ATICEN) has also expressed for the 50% tariff increased approved by the Nigerian Communications Commission (NCC) highlighting that telecoms is Nigeria’s second-largest investment sector after oil and gas.
In a statement made available to Technology Times and signed by Tony Izuagbe Emoekpere, ATCON President, the association praised the NCC’s collaborative approach, and its recognition of industry realities. ATCON views the decision as an important step toward ensuring continued quality service for Nigerian consumers
Image credit: Tony Izuagbe Linkedin handle.
According to Emoekpere, “for over a decade, tariff rates have remained static, despite escalating costs driven by inflation, foreign exchange volatility, and the significant investments required to meet growing consumer demand.”
Tony Izuagbe Emoekpere, ATCON President.
“We commend the NCC’s collaborative approach and its recognition of industry realities and we eagerly await the release of the official Document as enshrined in the Nigerian Communications Act 2003, which will provide the necessary clarity on the specifics of this decision,” Emoekpere states. “This document will be instrumental in guiding operators and stakeholders on the implementation of the adjustments and the accompanying expectations.”
ATCON: Telecoms tariff increase addresses financial pressures
ATCON says that for over a decade, telecoms tariff rates have remained static, despite escalating operational costs due to factors such as inflation and foreign exchange volatility.
According to Emoekpere, “for over a decade, tariff rates have remained static, despite escalating costs driven by inflation, foreign exchange volatility, and the significant investments required to meet growing consumer demand.”
The ATCON President says that “these realities have placed operators under immense financial pressure, threatening the sustainability of the telecommunications sector, which is a critical enabler of Nigeria’s digital economy.”
A Step Toward Sustainability
While the approved tariff adjustment does not fully address operators’ requests for a 100% increase, ATCON believes the 50% cap is a step in the right direction.
“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 adds. “This adjustment will enable operators to continue investing in infrastructure, expand coverage, and improve service quality for the benefit of all Nigerians.”
Balancing Consumer and Operator Needs
ATCON commends the NCC for taking a consultative approach that balances the needs of both operators and consumers. The association encourages the telecoms regulator to continue engaging with operators to address ongoing challenges that affect operational efficiency
“We encourage the Commission to sustain its engagement with operators to tackle ongoing challenges that hinder their operational efficiency.”
Benefits for Consumers
ATCON reassures Nigerians that the tariff adjustments will benefit consumers. Operators, Emoekpere notes, are committed to reinvesting the additional revenues into improving network quality, expanding digital service access, and enhancing customer experience
“We also want to reassure the Nigerian public that this adjustment will ultimately translate into significant benefits for consumers,” the ATCON President says. “Operators are committed to reinvesting these additional revenues into improving network quality, expanding digital service access, and delivering an enhanced customer experience. These efforts will ensure that Nigerians enjoy better connectivity, greater coverage, and innovative solutions that meet their evolving needs.”
Supporting Nigeria’s Digital Economy
ATCON reaffirms its commitment to supporting Nigeria’s digital economy. The association stressed that the telecoms sector’s sustainability is crucial for the nation’s continued economic growth.
“ATCON stands firmly with its members and assures Nigerians that the telecommunications sector is dedicated to providing services that contribute to national development and economic growth,” its President says. “By fostering an environment of sustained investment, we can ensure that Nigeria’s digital economy continues to flourish, creating value for consumers, businesses, and the nation at large.”
In related development, Comrade Adede John Williams, ATICEN President, has commended Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy, and Dr. Aminu Maina, Executive Vice Chairman of NCC, for their proactive measures in addressing the financial sustainability of telecoms operators in Nigeria.
“Aside from the oil and gas industry, the telecommunications industry is the only sector attracting significant investment growth, and Nigerians shouldn’t allow it to collapse by way of destructive criticism,” Williams says in a statement to Technology Times.
He calls on subscribers, stakeholders, and consumers within the telecoms ecosystem to understand the necessity of the tariff adjustment. According to him, the 50% increase is driven by rising inflation, surging energy costs, operational expenses, and currency devaluation, which have severely impacted mobile network operators (MNOs).
Williams urged consumers to consider the long-term sustainability of the sector, emphasizing that “the industry regulator is always protecting the consumers’ rights while ensuring that operators can continue to provide quality services.”
Highlighting the sector’s contribution to Nigeria’s economy, Williams notes that telecoms plays a crucial role in driving foreign direct investment (FDI) and gross domestic product (GDP) growth. He stresses the importance of supporting the industry’s growth rather than engaging in destructive criticism.
“We hereby support the tariff adjustment in order to prevent the telecommunications sector from crumpling and to foster economic growth,” he adds. “As the industry’s mouthpiece for the operators, going forward, we assured Nigerians that there shall be more improved service delivery as requested by the subscribers and as always maintained by the operators.”
Williams calls for collaboration among stakeholders to achieve greater milestones in the telecommunications industry. “Together, I believe we can achieve even more momentous milestones if we welcome what I will call, ‘All-Hands-On-Deck collaboration’ among stakeholders and players in the industry and not the ‘Pull-Others-Down Syndrome,'” he adds.
What you should know about telecoms tariff increase
On Monday, NCC confirmed that telecom operators would see a 50% increase in tariffs. The move comes as a response to the rising operational expenses within the sector and is designed to help maintain the stability of the industry. This adjustment is expected to alleviate financial pressures on operators and ensure the ongoing delivery of high-quality services, which are crucial for the growth of Nigeria’s digital economy.
This adjustment, NCC says, aligns with the directive from the Minister of Communications and Digital Economy, which capped any tariff increment approved by the NCC at a maximum of 60%.
According to the telecoms regulator, the adjustment is significantly lower than the over 100% increase requested by some operators. “The adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”
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