As the cost of living continues to rise, it is becoming increasingly clear that the telecommunications sector, a backbone of Nigeria’s digital economy, cannot be exempt from the economic realities gripping the nation. While Nigerians depend heavily on affordable and reliable voice and internet services, the truth is that telecom operators are grappling with skyrocketing operational expenses, which threaten the sustainability of the entire industry.
The Nigerian Communications Commission (NCC) has announced that it will unveil a new and simpler tariff structure for telecom operators on December 13, 2024. This move signals a critical step towards addressing the imbalance between service costs and operational realities. While no one likes the idea of paying more, we must face the uncomfortable truth: quality services come at a cost, and maintaining the status quo could lead to a collapse in service standards.
The Unseen Struggles of Telecom Operators
Telecom operators in Nigeria, including major players like MTN, Airtel, and Glo, have long kept prices stable, even as the costs of fuel, electricity, and infrastructure maintenance have soared. In October, MTN’s CEO, Karl Toriola, painted a bleak picture: the industry is hemorrhaging money, relying on financial reserves to stay afloat. This is not a sustainable model.
Earlier this year, telecom operators made their first call for a tariff review in 11 years. Their argument was simple: without a fair adjustment to tariffs, the quality of service will deteriorate, and the financial health of the sector will be compromised. Despite these warnings, the industry has continued to bear the brunt of economic inflation without passing the costs on to consumers.
Why Nigerians Should Pay Attention
The telecommunications sector is one of the few that has not raised prices despite inflationary pressures. Yet, this generosity cannot last forever. Network operators must invest in infrastructure to expand coverage, improve internet speeds, and ensure that call quality meets global standards. Without the necessary financial resources, these investments will stall, leaving Nigerians with subpar services.
It’s also worth considering that telecommunications are no longer a luxury but a necessity. From remote work to online learning, e-commerce, and healthcare, every aspect of modern life depends on a robust and reliable digital network. If we expect first-world services, we must be willing to shoulder part of the cost.
The NCC’s Balancing Act
The NCC’s new tariff framework promises to make pricing more transparent and consumer-friendly. While the details are still under wraps, it’s crucial that any changes strike a balance between affordability for consumers and profitability for operators. This is not just about raising prices—it’s about ensuring that the industry remains viable while providing Nigerians with the quality services they deserve.
A well-thought-out tariff adjustment could also open the door for innovative pricing models. For example, operators might introduce data-sharing plans, pay-per-use models, or tailored packages for different demographics. Such initiatives would ensure that consumers get value for money while helping operators cover their costs.
A Call for Understanding
As we approach December 13, it’s important for Nigerians to approach this issue with an open mind. Nobody wants to pay more, but the cost of doing nothing is far greater. If operators can no longer sustain their services, the digital backbone of our economy will crumble, affecting millions of lives and businesses.
The NCC’s forthcoming announcement is a reminder that we are all stakeholders in this industry. While telecom operators must prioritize efficiency and innovation, consumers must also recognize the economic realities and be prepared to contribute to the sustainability of this vital sector.
By ensuring that telecom tariffs reflect the true cost of operation, we can secure a brighter, more connected future for all Nigerians.
— Anthony Emeka Nwosu
Telecom operators in Nigeria, including major players like MTN, Airtel, and Glo, have long kept prices stable, even as the costs of fuel, electricity, and infrastructure maintenance have soared. In October, MTN’s CEO, Karl Toriola, painted a bleak picture: the industry is hemorrhaging money, relying on financial reserves to stay afloat. This is not a sustainable model.
