Airtel Nigeria Backs Call For Tariff Adjustment as Operational Costs Surge By Over 300%

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

by Samson Akintaro

Airtel Nigeria has added its voice to the industry-wide call for an upward review of tariffs in the telecom sector, saying the costs of operation have gone up 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 need for more investments

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.

The proposed tariff adjustments, Balsingh argued, will not only ensure the sustainability of the telecom sector but also improve service delivery.

He added that by enabling the telecom operators to expand coverage, strengthen network security, and introduce cutting-edge technologies, the adjustments would directly enhance the quality of connectivity for Nigerians.

According to him, the telcos’ priority is to ensure that no one is left behind in the country’s digital transformation journey.

What you should know

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.

Sharing the same sentiment as Airtel’s CEO, Toriola said the telecom industry is now facing a sustainability threat that must be addressed through a tariff review.

He, however, noted that the telecom regulator, the Nigerian Communications Commission (NCC), may not approve the 100% increase requested.

“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.