The recent 50% increase in telecom tariffs, approved by the Nigerian Communications Commission (NCC), has sparked heated discussions across the nation.
While critics argue that the hike adds to the financial burdens on consumers, telecom operators say it’s a necessary lifeline for the sector’s survival.
Dinesh Balsingh, Chief Executive Officer of Airtel Nigeria, spoke out in defense of the increase, describing it as a “critical measure” to sustain the telecommunications industry and ensure continued delivery of quality services. The adjustment marks the first significant hike in over a decade, reflecting what industry leaders describe as a response to mounting economic challenges.
In a statement released on Wednesday, Balsingh emphasized the dual goals of the tariff adjustment—ensuring the industry’s growth while protecting consumers.
“This tariff adjustment reflects a balanced approach to ensuring the sustainability of the telecom sector while safeguarding the interests of consumers,” he said. “The price increase, which was highly needed for the survival and continued growth of the industry, will enable us to keep investing in network infrastructure, expanding coverage, and delivering improved services to meet the evolving needs of our customers.”
The NCC’s decision to approve the 50% hike comes amidst growing concerns about the financial viability of telecom operators. For over a decade, telecom prices had remained unchanged despite inflation, rising operational costs, and the devaluation of the naira.
Earlier, telecom operators had sought a 100% tariff increase to reflect the current economic realities. However, the NCC opted for a middle ground, citing ongoing reforms to balance sustainability with affordability.
Balsingh highlighted Airtel’s commitment to bridging the digital divide by continuing to invest in infrastructure and expand its reach, particularly in underserved areas. He expressed optimism that the adjustment would pave the way for innovations that benefit both consumers and the industry.
“We are confident that this development will lead to greater advancements in telecommunications services across the country. Our focus remains on exceptional customer satisfaction while contributing to the long-term sustainability of the industry,” he added.
MTN Nigeria echoed similar sentiments. CEO Karl Toriola described the tariff adjustment as a milestone necessary to address the economic challenges confronting the sector.
“This adjustment is crucial for maintaining the investments required to deliver reliable, high-quality services to Nigerians,” Toriola said. “We remain committed to supporting Nigeria’s digital transformation agenda and driving inclusive growth for all stakeholders.”
The telecom sector, which serves as the backbone of Nigeria’s digital economy, has been grappling with increasing costs of operations, from infrastructure maintenance to rising energy prices. According to industry insiders, the tariff hike is not just about profit margins but about sustaining the network services millions of Nigerians rely on daily.
Despite assurances from operators, the tariff increase has drawn criticism from consumer advocacy groups and labor unions, some of whom have threatened boycotts to protest the additional burden on Nigerians already struggling with inflation.
The Nigeria Labour Congress had called on Nigerians to prepare for a nationwide boycott of telecommunication services in response to the Federal Government’s recent approval of a 50 per cent increase in telecommunication tariffs.
The NLC in a statement on Wednesday described the increment as a grave injustice to citizens already burdened by economic hardship.
NLC President, Joe Ajaero, expressed deep concern over the timing of the hike, which according to him coincides with rising inflation and declining purchasing power.
He said telecommunication services have become a basic necessity, with the average Nigerian worker spending approximately 10 per cent of their income on telecom charges
