Telecommunication providers in Nigeria have emphasized that they are the sole service entities that have refrained from implementing price adjustments over the past 11 years, despite the significant surge in inflation.
This information was revealed in a recent joint statement issued by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON).
The associations underscored that the current pricing structure in the telecom sector does not reflect economic realities, posing a threat to the industry’s sustainability and potentially undermining investor confidence.
Telecom operators have urged the Nigerian Communications Commission (NCC) to sanction price increases within the sector, emphasizing the substantial investments required for telecommunications infrastructure development, including network expansion, maintenance, and technology upgrades.
Despite facing challenging economic conditions, the telecommunications industry remains unique in its steadfastness, having refrained from revising its general service pricing structure upwards for the past 11 years, primarily due to regulatory limitations.
In light of a fully liberalized and deregulated sector, operators argue that the current price control mechanism, which fails to align with economic realities, jeopardizes the industry’s viability and could deter investor participation.
ALTON and ATCON have called on the government to facilitate constructive dialogue with industry stakeholders to address pricing concerns and establish a framework that balances consumer affordability with operators’ financial sustainability, as stated by ALTON Chairman Engr. Gbenga Adebayo and ATCON President Engr. Tony Izuagbe Emoekpere in their joint statement.
This development occurs against the backdrop of Nigeria’s soaring inflation rate, which reached 33.20 percent in March 2024, compounded by escalating energy costs within the country.