Telecoms operators in Nigeria are not spared from the low purchasing power of citizens.
They have lamented the fact that subscribers’ patronage has dwindled since the present administration came to power.
This, they adduced to the harsh economic conditions in which they operate, saying urgent steps need to be taken to save the industry from collapse.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, who spoke on behalf of the operators, said there is a need to increase tariffs so that the operators can remain in business.
He, however, observed that the increase must be done in such a way that consumers won’t suffer, noting that already, some people in Nigeria who once recharged ₦5,000 or ₦10,000 now mostly recharge ₦200 or ₦300 due to harsh economic realities.
Adebayo made his views known while speaking at the 93rd Telecom Consumer Parliament organized by the Nigerian Communications Commission (NCC) in Abuja.
“This is a critical moment for the telecom industry,” Adebayo said. “If we act now, we can establish a platform for growth and improve the user experience. Delaying necessary decisions will not only harm investor interests—many of whom are Nigerians feeling the same daily pains—but will also stifle innovation and the development of new services.”
He said while the operators understand the current economic hardships Nigerians are facing, there is an urgent need to increase tariffs to reflect current economic realities.
According to him, if the steps are not taken, the telecom industry in Nigeria stands the risk of losing the gains that have been achieved in the last 22 years.
He said: “People who once recharged ₦5,000 or ₦10,000 now mostly recharge ₦200 or ₦300 because of limited disposable income. Yet, they still benefit from connectivity at pre-crisis rates. Reversing the gains of the last 22 years would be detrimental to Nigeria’s future.
“If we don’t address these sustainability issues, the consequences will be much worse. Prices will need to rise, but this must be done thoughtfully, through dialogue and partnerships with the government to find lasting and manageable solutions.”
In his keynote, NCC Executive Vice Chairman Prof. Umar Danbatta noted that the challenges in the industry are a global issue and require immediate attention to address consumer concerns while keeping issues of data depletion and billing transparency in mind.