MTN, Airtel, Glo, Other Telcos Insist On Full Tariff Hike, Kickoff In Q1

Telecommunication companies, represented by the Association of Telecommunication Companies of Nigeria (ATCON), have expressed their support for the federal government’s proposed increase in tariffs for the telecommunications sector.

They assert that implementing this adjustment in the first quarter of the year will enable Mobile Network Operators (MNOs) to effectively plan for the changes.

This endorsement comes in response to the government’s initiative to address the longstanding requests from operators for a review of telecom tariffs.

Naijaonpoint recalls that the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, announced the proposed tariff adjustment during a stakeholder meeting with MNOs in Abuja on Wednesday, January 8, 2025.

He clarified that while the increase would not meet the 100 per cent hike sought by telecom operators, it aims to find a balance that reflects the financial and operational realities of the industry.

Tijani also indicated that the Nigerian Communications Commission (NCC) would soon approve and publicly announce the new tariffs.

In addition to the tariff review, Tijani disclosed the federal government’s intention to invest in telecommunications infrastructure to enhance connectivity across Nigeria.

On his part, the president of ATCON, Tony Izuagbe Emoekpere, voiced his support for this initiative, characterizing it as both overdue and essential.

In a recent interview with journalists, Emoekpere pointed out that the existing tariff structure has remained unchanged for several years despite the pressures of rising costs and inflation.

He further noted that while a 100 per cent increase may seem significant, it is not unreasonable when considered against the operational challenges faced by the telecom industry.

“Like I said, the issue is a work in progress. Although it’s a bit late considering how long the tariff has remained stagnant, a 100 per cent hike will not be a big leap,” Emoekpere told Leadership.

Emoekpere characterized this initiative as a ‘standard practice,’ consistent with global trends in which governments actively invest in essential national infrastructure.

He articulated that telecommunications infrastructure serves as a vital catalyst for national development and deserves appropriate recognition.

He noted, “In other countries, the government continues to invest in telecom infrastructure, and this would represent a positive advancement for Nigeria.”

Moreover, he underscored that such governmental involvement would contribute to mitigating the ongoing challenge of infrastructure vandalism that has adversely affected the telecom sector.

Emoekpere pointed out that vandalism has flourished due to insufficient protection of the infrastructure; he expressed hope that with government engagement, the incidence of vandalism could be significantly reduced.

“Once the government has a vested interest in the sector, it would ensure that telecom infrastructure is actively protected. This would not only boost the operations of the sector but also foster trust among stakeholders,” he added.

Emoekpere, therefore, urged the federal government to address critical barriers that hinder the sector’s growth. Among these barriers, he highlighted right-of-way bottlenecks and multiple taxation as key challenges that have slowed infrastructure development and the nation’s digital transformation agenda.

“Telcos face a heavy tax burden, paying over N2 trillion in taxes in 2023 alone, which includes around 50 different taxes imposed by federal, state, and local governments. This is unsustainable and significantly impacts the ability of operators to invest in expanding infrastructure,” Emoekpere said.

He called for the streamlining of taxes and levies imposed on telecom operators, arguing that reducing these financial burdens would encourage further investment in the sector. Emoekpere also urged for more public-private collaboration to position Nigeria as a leading digital economy in Africa.

“Our goals are clear: we must advocate policies that foster innovation and investment, drive infrastructure development to bridge connectivity gaps, and collaborate across public and private sectors to position Nigeria as a leading digital economy in Africa,” he stated.

Emoekpere underscored the significant transformative capabilities of emerging technologies, stressing the importance for Nigeria to wholeheartedly adopt innovations like 5G, artificial intelligence (AI), and the Internet of Things (IoT).

He pointed out that these technologies are revolutionizing global communication and will be crucial in advancing Nigeria’s digital economy.

“The Nigerian telecom sector is at a pivotal juncture. Emerging technologies like 5G, artificial intelligence, and the Internet of Things are reshaping global communication. We must seize this opportunity to align our policies and investments to stay competitive,” Emoekpere noted.