Godsent Ogbebor
The Association of Licensed Telecoms Operators of Nigeria (ALTON) has defended the recent 50% increase in telecom tariffs, attributing it to economic pressures and the need to sustain industry operations.
Speaking in a televised interview monitored by the News Agency of Nigeria (NAN) on Tuesday in Lagos, ALTON Chairman, Mr. Gbenga Adebayo, explained that the decision was not made lightly but was necessary due to mounting operational costs.
“The telecom industry has been facing rising expenses, including diesel, energy costs, and inflation, without a corresponding tariff adjustment for 12 years,” Adebayo stated.
He noted that the financial strain had made it difficult for operators to maintain service quality, forcing them to seek a tariff review. The 50% increase, he added, was approved by regulatory authorities after careful evaluation of economic factors and aligns with the Communications Act.
Addressing concerns over the constitutionality of the hike, Adebayo emphasized that due process was followed. He reassured consumers that the adjustment would ultimately benefit them by allowing telecom companies to improve service quality, enhance network performance, and attract more investment.
He also highlighted the challenges posed by foreign exchange fluctuations, noting that many telecom contracts were initially signed at lower exchange rates, yet operators now have to meet financial obligations at significantly higher rates. He called for stability in the forex market to support industry growth, stressing that a robust telecom sector is essential for economic development.
“Smaller telecom companies, weighed down by debt, have been particularly affected by the economic downturn, making network optimization critical,” Adebayo added.
He urged Nigerians to understand that rising costs are a global economic challenge, not unique to the telecom sector.
“We remain committed to improving services and attracting investments that will create jobs and enhance overall service quality. With increased investments and better infrastructure, the industry is now in a stronger position to drive economic growth and deliver improved services to Nigerians,” he concluded.
