Telecos Blame Economic Hiccups On 50% Tariff Hike

Telecommunications operators in Nigeria have attributed the recent 50 per cent hike in service tariffs to mounting economic pressures as industry stakeholders rally to stabilise the sector.
Speaking on Arise TV’s Global Business Report on Tuesday, the chairman of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, detailed the reasons behind the increase and assured Nigerians of improved service quality in return.
Adebayo painted a grim picture of the industry’s financial state, citing a combination of inflation, skyrocketing energy costs, and currency instability as key factors.
He revealed that the cost of diesel, which powers much of the industry’s operations, has surged dramatically, alongside other inputs. “The rates we were charging became unsustainable in the face of rising operational expenses. We had to act to save the sector from collapse,” he explained.
The ALTON chairman emphasised that the decision to adjust tariffs was not arbitrary. “We followed all due processes and presented our case to the regulator, highlighting current economic indicators. The 50 per cent review is a reflection of market forces and the realities of doing business in today’s Nigeria,” he said.
Despite these assurances, the tariff hike has sparked public outcry, with many Nigerians questioning the timing of the increase amid widespread economic hardship. Critics have argued that the move could further strain households already battling rising inflation and high energy costs.
In response, Adebayo acknowledged the challenges facing subscribers but urged patience, promising significant improvements in network quality and transparency. “We are committed to system upgrades, network optimisation, and tariff simplification. Subscribers will soon experience better service delivery as we address these longstanding issues,” he stated.
Adebayo also highlighted the broader implications of a weakened telecom sector, noting that telecommunications underpin critical industries like banking, health, education, and commerce. “The sector’s stability is essential for the entire economy. This tariff review ensures we can attract investments and remain operational,” he added.
As part of their efforts to rebuild trust, telecom operators have pledged to prioritise investments in infrastructure and innovation to meet growing consumer demands. However, industry insiders caution that the success of these plans hinges on factors like foreign exchange stability and favorable government policies.