The Association of Licensed Telecommunication Operators of Nigeria (ALTON) has confirmed that the Nigerian Communications Commission (NCC) has mandated telecom operators to simplify their tariff structures, making them more transparent and easier for subscribers to understand. This comes amid recent concerns over the 50% tariff increase in the telecommunications sector, which was implemented to sustain the industry and improve service quality.
Speaking during a televised interview on Tuesday, Chairman of ALTON Gbenga Adebayo, emphasized that the tariff adjustment was a necessary response to the current economic conditions, including rising operational costs and inflation. He noted that the industry had not seen a tariff adjustment in over 12 years, during which time costs for diesel, energy, and other operational inputs had surged. Without a tariff review, the telecom sector risked collapse, he explained.
Adebayo clarified that the tariff adjustment follows regulatory provisions and due process, ensuring it reflects market realities while maintaining transparency. He reassured Nigerians that the hike would lead to significant improvements in service delivery, with operators committed to optimizing networks, upgrading systems, and enhancing overall performance.
“Our regulator doesn’t set prices but ensures that they align with market forces,” Adebayo stated. “This adjustment is the result of comprehensive engagement with the government and our regulator, making it both transparent and necessary.”
He also pointed out that, in line with government mandates, telecom operators are working to simplify tariffs for greater understanding, making the pricing more user-friendly for subscribers. Immediate steps include deploying new systems and addressing quick fixes to improve network performance.
Adebayo acknowledged the challenges faced by subscribers due to the tariff adjustments but called for understanding, stressing that the review is a reflection of global economic realities, not arbitrary decisions. He reminded the public that the telecom sector plays a crucial role in supporting critical industries such as commerce, banking, education, and healthcare, emphasizing that a thriving telecom industry is vital for national development.
Looking forward, Adebayo expressed confidence that the tariff review would restore investor confidence, attract foreign direct investments (FDI), and lead to job creation and economic growth. He stressed the importance of a stable foreign exchange market to ensure smooth operations in the sector, allowing telecom operators to manage obligations more effectively and attract investments.
“Stability in the currency market will allow us to better manage our obligations and grow the sector,” he said.
In conclusion, Adebayo assured Nigerians that the telecom industry was on the path to recovery and growth, and that the current adjustments would pave the way for better services and opportunities for economic transformation.
