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Nigerians may soon encounter varying prices for telecommunication services such as calls, data, and SMS depending on the state they reside in, as telecom companies contemplate implementing different tariffs across regions. This proposed measure aims to address the challenges posed by multiple taxation and the varying business environments across different states.
Telecom operators argue that maintaining a single national tariff is no longer suitable, given the differing costs of providing services in various regions of Nigeria. The Chairman of the Association of Licensed Telecoms Operators of Nigeria, Mr. Gbenga Adebayo, revealed this development during his address at ‘The Nigeria eGovernment Summit 2023’ held in Lagos, which was centered around the theme, ‘eGovernment: Pathway to a prosperous nation.’
Adebayo emphasized that the issue of multiple taxation has been a long-standing concern, and adopting variable tariffs is a logical response to the challenges faced by the telecom industry. He explained, “If you have a state that has introduced 50 different taxes for the operator, the telcos need to pass it on to the subscribers there. Otherwise, we would remain on this issue for many years to come.”
Elaborating on this matter further during the event, Adebayo confirmed that the Nigerian Communications Commission (NCC) is aware of this proposal, asserting that it represents the path forward for telecom companies. He noted that the telcos are furnishing the NCC with data to support this demand, and it is seen as the most effective approach to combat the multitude of taxes, especially in regions where service rollout costs are considerably higher.
Adebayo argued that the current uniform pricing system for telecom services does not account for the varying business environments and taxation levels across states. He stated, “It will be unfair on states that provide a bright friendly business environment to pay as much as states that have high hostility against service providers. And we believe that the time has come. It is not done anywhere in the world.”
Implementing variable tariffs would mean that the cost of telecom services could differ from one state to another, depending on the local regulatory and business environment. Adebayo clarified that this change would be contingent upon approval from the Nigerian Communications Commission and would proceed once granted.
He further mentioned that the telecom industry is set to engage in discussions with the new Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, in the coming days to explore his agenda and address pertinent industry issues.
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