The Chief Executive Officer of Financial Derivatives Company Limited, Mr. Bismarck Rewane, has thrown his weight behind plans by telecommunications operators in Nigeria to increase their tariffs, saying it is the only way to sustain the businesses.
Speaking during a Channels TV interview program over the weekend, Rewane justified price increment for telecoms services, citing several factors. According to him, the last time there was a telecom price review was in 2013, and the prices of every other service in Nigeria have gone up in multiple-folds since then.
Rewane said the current tariff regime is inhibiting the operators’ capacity to invest more in infrastructure, hence, the quality of their services has been deteriorating in recent times. He added that poor telecom services, would not only affect the telecom subscribers but the economy at large.
Emphasizing the need for the tariff increase, Rewani said:
According to Rewane, while the telecom sector officially contributes 10% to the GDP, it is a critical form of social infrastructure, hence, people must be ready to pay the right price to enjoy the services. He added that in other countries where the right prices are being paid, they get better quality service compared to what Nigerians are getting currently
Last month, the telecom operators put out a statement drawing the attention of the telecom regulator and the subscribers to the need to increase tariffs.
In a joint statement by the Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON), the operators said the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.
They blamed this on the regulatory restraints that have been preventing them from pricing appropriately.
The Nigerian Communications Commission (NCC) regulates prices in the telecom industry and telecom operators are not allowed to implement any price change without the regulator’s approval. The regulator has said a cost-based study is being conducted to determine if it would approve price increments for the operators.