Addressing telcos call for cost reflective tariff

Telecommunication companies in Nigeria are advocating for the implementation of cost-reflective pricing models to allow them the flexibility to adjust prices in line with operational costs. Tony Emoekpere, the President of the Association of Telecommunications Companies of Nigeria, emphasized the importance of ensuring the sector's growth by aligning tariffs with industry dynamics and inflationary pressures. Emoekpere stated that the telecom sector in Nigeria has not undergone any significant tariff review in the past 11 years. As a result, many operators are scaling back their expansion plans and budgets, which could potentially lead to a contraction in the industry. This contraction, if not addressed, could have negative implications not only on service quality but also on the country's GDP. The President of the Association of Telecommunications Companies of Nigeria highlighted the need for a cost-reflective tariff structure that can be automatically triggered to avoid constant back-and-forth adjustments. Emoekpere called for the establishment of a framework in collaboration with regulators and the government to safeguard the industry and ensure a consistent quality of service. Emoekpere indicated that discussions with the Nigerian Communications Commission (NCC) are ongoing regarding the commissioning of cost-based studies to analyze operational costs and make necessary adjustments. He emphasized that while costs fluctuate, a dynamic framework is essential to adapt to changing market conditions. When questioned about the timing of tariff adjustments in light of rising inflation, energy costs, and currency devaluation, Emoekpere acknowledged the challenges but stressed the need for a structured framework to consider all factors and align price increases with consumer affordability. He highlighted that no pricing model that has remained static for years can sustain industry growth. In conclusion, Emoekpere emphasized the importance of balancing industry sustainability with consumer affordability. He expressed optimism about engaging with the Ministry of Communication and Digital Economy and Innovation to establish a framework that supports the long-term growth of the telecommunications sector in Nigeria. As developments continue to unfold, stakeholders in the telecommunications industry will closely monitor progress on adopting cost-reflective tariffs and ensuring a conducive regulatory environment for sustained growth and innovation.