Airtel Nigeria has highlighted the urgent need for a tariff adjustment in response to a dramatic 300 percent increase in operational costs over the last 18 to 24 months. The telecom giant emphasized that the proposed changes are crucial to maintaining the sustainability of the industry and ensuring continued service delivery to Nigerians.
Speaking on the issue, Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, noted that telecom tariffs in the country have remained unchanged for over a decade despite the rising costs of operations. He stressed that this static pricing structure is no longer viable, given the current economic realities and the growing demand for digital connectivity.
“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300 percent in the last 18 to 24 months alone,” Balsingh stated. “To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities.”
The telecom sector, represented by major operators including Airtel, has formally requested a 100 percent increase in tariffs from the Nigerian Communications Commission (NCC). This move, according to industry stakeholders, is necessary to cover escalating costs associated with infrastructure maintenance, network expansion, and the adoption of cutting-edge technologies.
Balsingh further elaborated on the necessity of the adjustment, emphasizing that significant investments are required to upgrade networks and enhance service quality. He assured Nigerians that these changes would result in better connectivity, expanded network coverage, and improved security.
“The increasing demand for digital services requires us to continually upgrade our networks. These investments come at a cost, one that must be shared proportionally to guarantee long-term viability,” he explained. “By enabling us to expand coverage, strengthen network security, and introduce cutting-edge technologies, these adjustments will directly enhance the quality of connectivity for Nigerians. Our priority is to ensure that no one is left behind in the country’s digital transformation journey.”
Airtel Nigeria’s call for a tariff review underscores the pressing challenges faced by the telecommunications sector in navigating rising operational costs while striving to meet the demands of a digitally connected Nigeria. The outcome of the request to the NCC is expected to significantly impact the future trajectory of the telecom industry and its role in Nigeria’s economic development.
