Without tariff adjustments, Nigeria’s telecom industry will stagnate—ATCON

Telecom Association Justifies Tariff Increase as Investment in Nigeria’s Digital Future

The Association of Telecommunication Companies of Nigeria (ATCON) has acknowledged public concerns over the recent increase in telecom tariffs but emphasized the necessity and long-term benefits of the adjustment.

ATCON President, Mr. Tony Emoekpere, shared these insights during a phone interview with the News Agency of Nigeria in Ibadan on Wednesday.

Emoekpere described the public’s reaction as understandable, given the current economic challenges faced by Nigerians. However, he framed the tariff increase as a strategic investment in Nigeria’s digital economy, aimed at ensuring sustainable growth and improved service delivery.

“For years, telecom operators have faced significant financial pressures due to fluctuating foreign exchange rates, high energy costs, multiple taxation, and increasing infrastructure expenses,” he explained.

“These challenges have hindered the expansion of network capacity, improvements in service quality, and efforts to close the digital divide. Without a pricing adjustment, Nigeria’s digital infrastructure risks stagnation, making it harder for the country to compete globally.”

Emoekpere underscored that the price increase was not just about sustaining operations but about providing the resources needed to enhance the quality and reach of telecom services.

“This adjustment will enable operators to expand 4G and 5G coverage to more areas, including underserved regions. It will also support upgrades to network sites for better reliability and faster broadband speeds, which are critical for businesses, education, fintech, telemedicine, and other essential digital services,” he said.

He assured Nigerians that the ultimate measure of this adjustment would be tangible improvements in service quality, such as faster internet speeds, fewer dropped calls, and broader coverage, driving the nation’s digital transformation.

“This is the goal we are working towards, and the telecom industry is committed to delivering on this promise,” Emoekpere stated, adding that the tariff hike was necessary to attract the investments required for maintaining and improving services.

He also cited the Global System for Mobile Communications Association’s (GSMA) position that sustainable pricing is vital for long-term network investments.

However, Emoekpere noted that other systemic challenges in the telecom sector need to be addressed to support Nigeria’s digital transformation effectively.

“The government should prioritize simplifying Right of Way permits to accelerate fibre deployment and fully enforce Critical National Information Infrastructure protections to prevent vandalism of telecom assets,” he said.

He also called for reducing the multiple layers of taxation imposed on telecom operators at federal, state, and local levels and introducing incentives for rural broadband expansion to ensure digital inclusion for all communities.

While acknowledging progress in some areas, such as the resolution of the USSD debt issue, Emoekpere expressed optimism that the current administration would continue making strides in addressing these challenges.

He added, “Consumers have a right to demand better services. The tariff increase must come with visible improvements—faster speeds, wider coverage, and greater reliability. Telecom operators are geared toward meeting these expectations, and the Nigerian Communications Commission (NCC) has set clear quality-of-service targets.”

Emoekpere concluded by reiterating that the tariff adjustment is a step toward securing Nigeria’s digital future, ensuring the industry can meet growing demands while delivering a better user experience.