Telcos fume as FG orders tariff hike reversal

Telecommunication companies are fuming over the directive issued by the Federal Government ordering a reverse of recent 10 per cent hike in calls and data prices.

WITHIN NIGERIA had reported that the Nigerian Communications Commission (NCC), through a letter dated Oct. 12, gave the directive following media reports of unilateral implementation of the recently approved 10 per cent upward tariff adjustments.

The implication is that telcos like MTN Nigeria and Airtel, who had initially increased the prices of their data bundles by about 10 per cent, will now need to revert to their old prices.

The NCC said that even though the tariff adjustment was provisionally approved by its management, its board has now overturned it.

Since the turn of the year, telcos have been agitating for an upward price review of their services because of increases in their cost of production. In a recent letter to the NCC, the Association of Licensed Telecoms Operators of Nigeria, revealed that the cost of operation for telcos has increased by 40 per cent since the Russia-Ukraine war started.

According to PUNCH, findings show telcos have implemented the latest directive but were angry over the development.

The aforementioned publication reported that sources in the telecoms industry, telcos have reserved their prices but the move by the government is telling and will impact investor confidence.

One telcos source said, “To be honest with you, we had to reverse the prices about a week ago. We did it quietly. There are so many layers to this. If we were in a serious country, how can a regulator give approval then deny it did so after a while.

“They don’t know the gravity of this decision. The prices of everything have gone up, even bread is now more expensive. We use scarce foreign exchange in the industry. The only reason why we are still surviving is because of volume. The cost of production has seriously gone up, eating into margins. Investors that should come to the country will not come. We cannot talk because we are still trying to protect our business, but we will continue to bear this.”

Another telcos source blamed the recent move on politics. The source refused to speak but said, “I am a businessman, I don’t want to heat up the business climate.”