ATCON Urges Prompt Action on Tariff Review Amid Industry Challenges
The Association of Telecommunications Companies of Nigeria (ATCON) has renewed its call for the federal government and regulators to consider a tariff increase for telecommunications services, highlighting the urgent need to address the financial challenges facing the sector.
ATCON President, Tony Emoekpere, emphasized this during an interview in Lagos on New Year’s Day.
He urged the Ministry of Communications, Innovation and Digital Economy, alongside the Nigerian Communications Commission (NCC), to act swiftly, suggesting that a tariff review be implemented by the first quarter of 2025 to stabilize the industry.
According to Emoekpere, the telecom sector operates as a value chain, and its financial health is critical for sustaining operations and enabling further investments. He noted that despite previous discussions on tariff harmonization, there has been no formal communication from the NCC regarding a concrete plan for a tariff adjustment.
“The revenue generated by many operators is no longer sufficient to sustain operations or maintain infrastructure. With Nigeria’s growing population and increasing demand for telecom services, this issue cannot be ignored,” Emoekpere stated.
He highlighted that as the population grows, both individuals and businesses demand more services, but the inability of operators to charge sustainable tariffs puts a strain on the entire industry.
“If businesses cannot charge reasonable amounts to cover costs and make a profit, the quality of service and investment in infrastructure will continue to decline. This is already evident in complaints about service quality across the country,” he added.
The ATCON president stressed that the current financial climate in the telecom sector discourages investment, especially in network expansion and innovation. He warned that without intervention, 2025 could be a particularly difficult year for the industry.
Emoekpere urged the regulators to make firm decisions quickly, noting that a failure to act could lead to widespread infrastructure degradation and a decline in service quality.
“Delays in addressing this issue will worsen the industry’s challenges, and ultimately, consumers will bear the brunt,” he cautioned.
The plea comes as Nigeria continues to grapple with economic challenges, including inflation and currency depreciation, which have increased operational costs for telecommunications companies.
Stakeholders are hopeful that the government and regulators will consider the proposed tariff review as part of broader efforts to strengthen the telecom sector, which remains a critical driver of economic growth and digital transformation in the country.
