Nigeria: ATCON Calls for Urgent Review of Telecommunication Tariffs

The Association of Telecommunications Companies of Nigeria (ATCON) has renewed its call for the telecommunications industry regulators to prioritize a review and potential increase in call tariffs.

Speaking to the News Agency of Nigeria (NAN) in Lagos on New Year’s Day, ATCON President, Mr. Tony Emoekpere, emphasized the critical need for the Ministry of Communications, Innovation, and Digital Economy, as well as the Nigerian Communications Commission (NCC), to address the issue. He described the telecom sector as a value-chain business heavily reliant on sustainable revenue generation for operational stability.

Call for Timely Action

Emoekpere urged the regulators to take decisive action by the first quarter of 2025. He noted that while the NCC has not issued an official statement on tariff adjustments, discussions about harmonizing tariffs have been previously mentioned.

“The current state of tariffs presents a significant challenge to the industry,” Emoekpere said. “Revenue from existing tariffs is insufficient to support ongoing operations, let alone fund the infrastructure required to meet growing demands.”

Impact of Population Growth

With Nigeria’s population growing rapidly, the demand for telecommunication services is rising. Emoekpere warned that if operators are unable to charge tariffs that reflect the true cost of services, the industry will face severe consequences.

“As the population expands, businesses and individuals alike are increasing their reliance on telecom services. However, without reasonable pricing, operators cannot maintain their infrastructure or invest in expansion,” he said.

Consequences of Inaction

The ATCON President highlighted the potential adverse effects of maintaining the status quo. He warned that declining revenue, especially in dollar terms, would inevitably impact the quality of services and the state of existing infrastructure.

“Consumers are already voicing concerns about service quality,” he noted. “Without sufficient revenue, operators have no incentive to invest in upgrading or expanding their networks. This poses a significant risk to the industry’s sustainability.”

The Path Forward

Emoekpere called on the Ministry of Communications and the NCC to expedite discussions and make firm decisions on tariff reviews to prevent further deterioration of the industry.

“The current climate in the telecom sector is not conducive to attracting new investments,” he stated. “If this issue is not resolved promptly, 2025 will bring even greater challenges, jeopardizing both operational stability and the future growth of the sector.”

ATCON’s plea underscores the urgency of addressing the financial viability of the telecommunications industry to ensure it continues to meet the demands of Nigeria’s growing population and economy.