Telecommunication operators in Nigeria are already talking with the regulator of the sector, the Nigerian Communication Commission, to review the prices of their services to reflect prevailing market realities.
This, it was gathered, was particularly necessary in the light of the recent unification of the foreign exchange market.
The president, Association of Licensed Telecoms Operators of Nigeria, Gbenga Adebayo, told the The Punch that the review was necessary for the operators to cover the cost of production.
Recall that the CBN recently asked Deposit Money Banks to remove the rate cap on the naira at the official Investors and Exporters’ Window of the foreign exchange market, to enable the free float of the naira against other foreign currencies.
This is to bridge the gap between the official and parallel rates of the naira. This move, according to Adebayo, has tipped the scale in favour of a price review in the industry.
He told The Punch, “For our industry to remain sustainable, our prices have to reflect the cost of production. This goes without saying that we will also review rates at the appropriate time after consultation with all the stakeholders to reflect the current cost of inputs.”
Adebayo noted that the operators were not insulated from the what is happening in the economy.
“When the input cost goes up, prices will also go up. So, in order for the industry to be sustainable, and for us to continue to maintain the grade of service that we deliver, it is only realistic that we review prices.
“We are providing all the necessary information to the regulators,” he said.
As of April 2023, there are 223.34 million mobile subscriptions in the country. Raising prices of telecom services is set to affect everyone, the president, National Association of Telecoms Subscribers, Adeolu Ogunbanjo, told The Punch.
He said, “They can’t increase prices now, that will be totally insensitive. Fuel subsidy is gone, electricity is planning an upward review, we are against this. It will affect businesses again, telecoms is everything to us.”
