Business & Economy

Telecom Tariff Hike: ATCON Defends Price Increase as Key to Nigeria’s Digital Future

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The Association of Telecommunication Companies of Nigeria (ATCON) has addressed the growing concerns over the recent increase in telecom tariffs, underscoring the necessity of the hike for the advancement of Nigeria’s digital economy. In a telephone interview with the News Agency of Nigeria in Ibadan, ATCON President Mr. Tony Emoekpere acknowledged the public’s concerns, citing the challenging economic environment faced by many Nigerians, but stressed that the increase was an investment in the country’s future.

Emoekpere explained that telecom operators have long been burdened by financial pressures, including foreign exchange fluctuations, rising energy costs, multiple layers of taxation, and escalating infrastructure expenses. These factors, he said, have hindered network expansion and service quality improvements, making it difficult for Nigeria to stay competitive in the global digital economy.

“The tariff increase is not merely about higher prices; it’s a strategic investment in Nigeria’s digital infrastructure,” Emoekpere stated. He emphasized that the funds raised would be used to expand 4G and 5G coverage, particularly in underserved areas, and improve network reliability, internet speeds, and overall service quality.

The tariff adjustment, Emoekpere said, would allow for necessary upgrades to network sites, resulting in fewer dropped calls, faster internet speeds, and broader coverage—key factors for businesses, education, fintech, telemedicine, and other vital sectors. He reassured that the telecom industry was fully committed to improving service delivery and driving Nigeria’s digital transformation.

Highlighting the long-term vision for Nigeria’s digital economy, Emoekpere pointed out that the increase aligns with the Global System for Mobile Communications Association’s stance on sustainable pricing, which is crucial for network investment. He also called for additional government support, including streamlining Right of Way permits to accelerate fiber deployment, reinforcing protections for telecom infrastructure, and reducing the multiple layers of taxation faced by operators.

Despite the challenges, Emoekpere expressed optimism, citing recent successes such as the resolution of the USSD debt issue. He affirmed that telecom operators, with the backing of the Nigerian Communications Commission (NCC), are committed to meeting quality service targets, ensuring that the tariff hike leads to visible improvements in service quality.

“The ultimate goal is to enhance the digital experience for Nigerians, and with this investment, we are confident that faster speeds, wider coverage, and greater reliability are within reach,” Emoekpere concluded.

Mike Ojo

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