Airtel Nigeria backs call for tariff adjustment as operational costs surge by over 300%  

The Chief Executive Officer of the company, Mr. Dinesh Balsingh, who stated this in an op-ed, said the adjustments are critical for maintaining high-quality services and enabling further advancements in Nigeria’s digital transformation journey.

“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300% in the last 18 to 24 months alone.  

“To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities,” Balsingh said.

The Airtel CEO also underscored the significant investments required to maintain and expand telecom infrastructure, which is pivotal to supporting Nigeria’s digital economy.

“The increasing demand for digital services across sectors such as education, banking, and healthcare requires us to continually upgrade our networks to deliver more capacity and improve service quality.  

“These investments come at a cost, one that must be shared proportionally to guarantee long-term viability,” he said.

Last week, the Chief Executive Officer of MTN Nigeria, Mr. Karl Toriola, said telecom operators in the country had requested an approximately 100% increase to ensure the industry’s sustainability rather than boost short-term profitability.

“We’ve put forward a request of approximately 100% tariff increases to the regulators. I doubt they’re going to approve that quantum of increases because they’re very sensitive to the current economic situation in the country,” he said.

The two telecom industry associations in Nigeria, the Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON) have also been at the forefront of advocacy for tariff review in the industry for over two years, citing increase in costs of operations.