Telecom Tariff Increase: A Necessary Investment in Nigeria’s Digital Future
The Telecommunications Sector in Nigeria is grappling with significant financial challenges, which have made it increasingly difficult to sustain and improve the quality of digital services. Emoekpere, the ATCON president, highlighted that the recent tariff increase is a necessary step to ensure Nigeria’s digital infrastructure can thrive and keep pace with global competition.
Key Reasons for the Tariff Adjustment
- Financial Strain on Telecom Operators: The industry has long faced foreign exchange fluctuations, high energy costs, multiple taxation, and rising infrastructure expenses. These challenges have hindered network expansion, quality service improvement, and efforts to bridge the digital divide.
- Sustainability Concerns: Without a pricing adjustment, Nigeria’s digital infrastructure risks stagnation, making it harder for the country to compete in the global digital economy.
- Investment in Future: The tariff increase is described as an investment in Nigeria’s digital future, which will lead to the expansion of 4G and 5G networks, particularly in underserved areas. This will improve service quality, reliability, and broadband speeds, supporting sectors like businesses, education, fintech, and telemedicine.
Expected Outcomes
- Improved Network Quality: Operators are expected to upgrade network sites, resulting in better reliability, fewer dropped calls, faster internet speeds, and wider coverage. These improvements are part of the digital transformation Nigeria seeks.
- Digital Economy Boost: Enhanced services will allow businesses and other sectors to operate more efficiently, contributing to a more robust digital economy.
Addressing Industry Challenges
While the tariff hike is seen as a vital step, Emoekpere emphasized the need to address other pressing issues:
- Simplifying Right of Way Permits to speed up fibre deployment.
- Strengthening National Information Infrastructure protections to prevent vandalism of telecom assets.
- Reducing Multiple Layers of Taxation faced by operators at various levels of government.
- Incentivizing Rural Broadband Expansion to ensure digital inclusion.
Positive Outlook
Despite the current challenges, Emoekpere expressed optimism about resolving these issues. He cited recent successes, such as the resolution of the USSD debt issue, as indicators of progress. He also emphasized the importance of clear service targets set by the Nigerian Communications Commission (NCC) to ensure the tariff increase brings tangible improvements in service quality.
Consumer Rights
Consumers, according to Emoekpere, have the right to demand better services. The tariff increase should come with visible improvements, including faster speeds, wider coverage, and greater reliability. The telecom industry is fully committed to meeting these expectations, and there is a strong push for continuous improvement in quality.
In summary, the tariff increase is seen not only as a financial necessity for the sustainability of Nigeria’s telecom sector but also as a strategic investment in the country’s digital future, ensuring that Nigeria can keep up with global technological advancements.
