Airtel Nigeria’s CEO, Dinesh Balsingh, has explained that the telecom company’s proposed tariff adjustments, which include a potential 100% increase, are crucial for the long-term sustainability of the sector, given the sharp rise in operational costs over the past 18 to 24 months.
In a statement shared on Monday, Balsingh emphasized the challenging economic realities facing the Nigerian telecom industry. Despite significant hikes in operating expenses, tariffs have remained unchanged for over a decade. According to Balsingh, the surge in operating costs—now up by over 300% in the last two years necessitates the tariff changes.
“Nigerian telecom operators, including Airtel, have submitted a proposal for a 100% tariff increase to the Nigerian Communications Commission (NCC), the country’s regulatory body, to address these challenges,” Balsingh said.
He pointed out that the proposed tariff increases are essential to ensure continued service quality and maintain operational viability. With the rising demand for digital services across sectors like education, banking, and healthcare, telecom operators face the ongoing challenge of upgrading networks to meet consumer needs.
“Tariffs have been stagnant for over a decade, but the operational cost of providing high-quality telecom services has surged dramatically. To continue offering the high standards Nigerians expect, we must realign our pricing to reflect the economic conditions,” he added.
Balsingh also highlighted the substantial investments needed to maintain and upgrade telecommunications infrastructure to meet growing demands for data and connectivity. The upgrades are essential to support emerging technologies, improve network security, and expand service coverage, ensuring the sector’s long-term growth.
The tariff adjustments, according to Balsingh, will help address these needs while ensuring minimal impact on consumers. He reaffirmed Airtel’s commitment to helping Nigeria position itself as a digital economy leader in Africa, while striving for affordability and sustainability.
“While we are adjusting tariffs, our primary goal is to expand coverage, enhance security, and provide advanced technology, ensuring that every Nigerian benefits from the country’s digital transformation,” Balsingh said. He further added that these changes would be phased in gradually to reduce the financial burden on customers.
