Telecommunications operators in Nigeria are preparing to implement a 50 percent tariff increase approved by the Federal Government through the Nigerian Communications Commission (NCC).
Although the NCC had initially scheduled the increase to take effect in February, operators have indicated that full implementation will begin in March.
During a media briefing in Lagos over the weekend, representatives of the telecom sector explained that the tariff adjustment was necessary to sustain the industry rather than being a move to boost profitability.
The announcement comes amid opposition from labor unions, with the Nigeria Labour Congress and the Trade Union Congress planning a nationwide protest on February 4, demanding a reduction of the hike to five percent.
The Chairman of the Association of Licensed Telecoms Operators of Nigeria, Gbenga Adebayo, explained that operators are following regulatory procedures, including filing, reviewing, and obtaining approvals before rolling out the new tariffs.
He noted that different service providers would introduce their adjusted rates gradually, with some changes expected as early as next week.
Adebayo emphasized that the telecom sector should not be expected to subsidize other sectors of the economy, pointing out that rising costs in various industries should not translate to artificially low telecom rates.
He warned that keeping tariffs unsustainably low could have negative long-term effects on the industry.
On the issue of investments, Femi Adeniran, the Director of Corporate Communications and CSR, stated that telecom firms have continued to invest in infrastructure and that the tariff adjustment would help ensure further expansion and service improvements.
Kenechukwu Okonkwo, Director of Product Innovation and Business Development at 9mobile, suggested that market forces should ideally determine tariff rates and expressed hope that economic conditions in the country would improve to prevent further increases.
Regarding the longstanding issue of Unstructured Supplementary Service Data (USSD) debt between telecom operators and banks, Adebayo confirmed that progress was being made toward a final resolution.
