50% Tariff Hike to Trigger Investments in Telecom Sector—ATCON

By Adedapo Adesanya

The Association of Telecommunication Companies of Nigeria (ATCON) says the increase in telecommunication tariffs by 50 per cent will boost investment in the sector.

ATCON President, Mr Tony Emoekpere, said the public concern was natural and expected, especially when considering the economic realities of many Nigerians.

He, however, described the increment as an investment in the future of Nigeria’s digital economy, citing its numerous benefits.

“For years, telecom operators have operated under immense financial strain due to foreign exchange fluctuations, high energy costs, multiple taxation, and rising infrastructure expenses.

“These challenges have made it increasingly difficult to expand network capacity, improve service quality, and bridge the digital divide.

“Without adjustments in pricing, Nigeria’s digital infrastructure would risk stagnation, making it harder for the country to compete in the global digital economy,” Mr Emoekpere said in an interview with the News Agency of Nigeria (NAN) yesterday.

He said the adjustment was not just about pricing but ensuring enough resources to maintain and improve the quality of services Nigerians rely on daily.

“This tariff increase is an investment in the future of Nigeria’s digital economy, as it will enable operators to expand 4G and 5G coverage across more locations, particularly the underserved areas.

“This increment will bring about the upgrade of network sites to ensure better reliability.

“It will also enhance broadband speeds to support businesses, education, fintech, telemedicine, and other critical digital services.

“At the end of the day, the success of this move will be measured by real and tangible improvements in quality of service with faster internet speeds, fewer dropped calls, and wider coverage, leading to the digital transformation we all desire.

“That is the ultimate goal, and the telecom industry is fully committed to delivering on this promise,” Mr Emoekpere said.

According to him, the tariff hike is necessary, being the only viable option to ensure the right investments guarantee good quality service.

He added that the Global System for Mobile Communications Association (GSMA) had recognised that sustainable pricing was crucial for long-term network investments.

He, however, stated there were still other pressing industry challenges that must be addressed if the government would truly support digital transformation.

“The focus should also be on simplifying Right of Way (RoW) permits to speed up fibre deployment.

“It should also be to fully enforce Critical National Information Infrastructure (CNII) protections to stop vandalism of telecom assets.

“Again, we should emphasise the reduction of the multiple layers of taxation that telecom operators face at federal, state, and local levels, and provide incentives for rural broadband expansion to ensure digital inclusion across all communities,” Mr Emoekpere said.

According to him, the positive news is that the issues are at different stages of being solved.

He noted that if the recent successes like the resolution of the USSD debt issue were anything to go by, “We are optimistic that the current administration will make progress in these areas as well.

“This should not stop us from remembering that consumers have a right to demand better services.

“The tariff increase should come with a visible improvement in quality: faster speed, wider coverage, and greater reliability.

“From all indications, the telecom operators are geared toward meeting these expectations, and the NCC has set clear quality service targets,” Mr Emoekpere said.