Telecom Operators Justify 50% Tariff Increase

Lagos, Nigeria  —  Major telecom operators in Nigeria have defended the recent 50% tariff hike, emphasizing its necessity for the sustainability of the industry amid rising economic challenges.

The justification was made by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) during a town hall meeting in Lagos, where key stakeholders, including telecom executives, journalists, and content creators, gathered to discuss the development.

Speaking on behalf of the industry, Mr. Tobechukwu Okigbo, Chief Corporate Services and Sustainability Officer at MTN Nigeria, underscored the severe financial pressures facing telecom providers. He pointed to a sharp increase in operational costs, citing a 300% rise in food, fuel, and electricity prices as major concerns.

“The survival of the telecom industry depends on this adjustment,” Okigbo stated. “Without it, service quality and network expansion will be at risk.”

While consumer advocacy groups have voiced concerns about affordability, telecom operators argue that the new tariffs are essential to maintaining service quality and sustaining investments in network infrastructure.

ALTON Chairman, Mr. Gbenga Adebayo, acknowledged public concerns but assured that operators would work towards improving service delivery. He noted that while efforts were ongoing to enhance network quality within three months, economic realities made an immediate turnaround uncertain.

The meeting also addressed broader industry concerns, including the impact of the tariff hike on underserved communities and the role of telecoms in Nigeria’s economic stability.

In response to the Nigerian Labour Congress (NLC)’s planned strike on February 7, Okigbo clarified that telecom workers, under the Private Telecommunications and Communication Senior Staff Association of Nigeria (PTECSSAN), were actively engaged in discussions regarding the economic situation.

Additionally, telecom executives Ms. Ugonma Nwoye and Mr. Kenechukwu Okonkwo offered advice to consumers on managing data usage efficiently, including disabling automatic downloads on WhatsApp to reduce unnecessary data consumption.

The statement concluded with a reaffirmation of the telecom industry’s commitment to providing reliable and affordable services despite the prevailing economic challenges.

 

By Taiwo  Olatinwo| February 3, 2025


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