Telecommunication firms are working with their regulator, the Nigerian Communication Commission (NCC), for an upward review of the prices of their services.
This was disclosed by the president, Association of Licensed Telecoms Operators of Nigeria, Gbenga Adebayo in an interview with The Punch.
Adebayo said the price hike is to reflect prevailing market realities, especially the recent unification of the foreign exchange market.
He noted that the a price review is needed for their industry to remain sustainable.
“For our industry to remain sustainable, our prices have to reflect the cost of production,” Adebayo said.
“This goes without saying that we will also review rates at the appropriate time after consultation with all the stakeholders to reflect the current cost of inputs.”
“When the input cost goes up, prices will also go up. So, in order for the industry to be sustainable, and for us to continue to maintain the grade of service that we deliver, it is only realistic that we review prices.
“We are providing all the necessary information to the regulators.”
He noted that the discussion for price increment began with the previous administration but the new Forex regime has made an increase paramount.
“We’ve been discussing this before the end of the last administration, and in actual fact, approval was granted for price review at the time, but we had some interventions that asked that it should be put on hold, which again does not reflect the reality of what we face,” he said.
“So, it is only normal to expect that there will be a price review.
“But it is not only FX that will influence this. It is in addition to other elements and parameters of the cost that we had mentioned in our previous submission to get a review of rates.
“This other condition will constitute further information, reason, and basis to justify the review of prices.”
Recall that telcos in a letter to the NCC in 2022, requested for a 40 per cent increase in the price of data, calls, and SMS due to the rise in their cost of operations.
They sought to raise the floor price of calls from N6.4 to N8.95 and the price cap of SMS from N4 to N5.61.
The letter read in part, “Upward review of the price determination for voice and data and SMS. Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.”
In his reaction, president, National Association of Telecoms Subscribers, Adeolu Ogunbanjo, said that it will “insensitive” for telcos to raise prices now given the recent removal fuel subsidy and the plan to hike electricity tariff.
He said, “They can’t increase prices now, that will be totally insensitive. Fuel subsidy is gone, electricity is planning an upward review, we are against this. It will affect businesses again, telecoms is everything to us.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
