Nigeria Telecommunication companies have initiated steps towards tariff increases and are calling on the federal government to facilitate constructive discussions on the matter.
The companies argue that the current price regulation mechanism does not align with economic realities and are urging government intervention to address pricing challenges.
In a joint statement by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), the telecom firms emphasized their unique position as the only sector yet to adjust prices, highlighting concerns about industry sustainability and potential erosion of investor confidence.
ALTON Chairman, Mr. Gbenga Adebayo, and ATCON President, Mr. Tony Emoekpere, in the the statement noted the absence of a general upward service pricing framework for the past 11 years.
The statement read in parts, “For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.
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“Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last 11 years, primarily due to regulatory constraints.
“Government needs to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.”
The telcos also expressed concerns on the worsening security challenges affecting the productivity of the services provided, urging the federal government erect measures to tackle the menace.
“Telecom infrastructure undisputedly plays a pivotal role in Nigeria’s national security and socioeconomic growth, especially as the country currently contends with multiple security challenges that require urgent and immediate actions in response to these threats.
“Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators. We urge the government to prioritise the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively.
“The industry also requires substantial investments in network expansion, maintenance, and technology upgrades,” the statement added.
