Communication Sector records lowest inflation rate in Nigeria at 2.3% amid calls for price increases

This according to the latest Composite Inflation Data for the month of November 2024 released by the National Bureau of Statistics.

Inflation rate in the telecoms sector contrast what is obtainable in other parts of the country reflecting a general price freeze that has been synonymous with the sector.

According to the National Bureau of Statistics, the inflation rate for the month of November rose to a 26 year high of 34.6% as prices escalated across several sectors of the economy.

The communication industry however recorded an inflation rate of just 2.3% while the Recreation & Culture recorded 9.8% inflation rates.

On a month on month basis, the communication industry is reported an inflation rate of just 0.3% the lowest of any of the sectors captured by the NBS.

The telecommunication sector’s steady inflation rate, which fell to 2.3% in November 2024, starkly contrasts with the broader economy’s soaring inflation of 34.6%.

While consumers might view this as a win, it highlights a brewing tension between regulators and telcos over pricing policies.

Telecom operators, through industry association ALTON (Association of Licensed Telecom Operators of Nigeria), have repeatedly called for an increase in service pricing to a cost-reflective level.

In April 2024, Naijaonpoint reported that ALTON and the Association of Telecommunication Companies of Nigeria (ATCON) jointly stated that the telecom industry is the only sector that has not reviewed its prices in over 11 years, despite rising inflation and other economic challenges.

More recently, Naijaonpoint reported in October 2024 that the approval of a 97% price hike by Starlink for its subscription services sparked controversy among local telecom operators.

Meanwhile the proposed rejig of the weighting of the consumer price index basket suggest Information and Communication will now have a weighting of 3.3 compared to 0.7 that is currently being used.

The communication industry is one of the largest sector in the country ranking number 3 in the country based on size.