The Association of Licensed Telecommunication Operators of Nigeria (ALTON) has defended the recent 50% tariff hike in the country, citing significantly higher economic headwinds and the need for sustainable rates.
In an interview on Arise TV’s Global Business Report, Engr. Gbenga Adebayo, Chairman of ALTON, explained that the tariff increase was necessary to reflect the current cost of providing services.
He noted that the industry had not had a price review in 12 years, despite rising costs of diesel, energy, and other expenses.
Adebayo emphasized that the government does not determine prices, but rather regulates based on market forces.
He stated that the 50% tariff hike was granted by the regulator after ALTON presented current economic indices and factors of cost and production.
Adebayo assured that the tariff hike would lead to improvements in quality of service. He outlined plans for tariff simplification, network optimization, and investment in new systems to enhance service delivery.
The ALTON chairman also expressed hope for stability in the foreign exchange market, which would help the industry manage its obligations.
Adebayo appealed to Nigerians to understand that the tariff hike was necessary to ensure the sustainability of the industry.
He noted that the industry plays a critical role in driving the economy and that investments in the sector would have a positive impact on other industries.
“We are not able to absorb the impact of the economic recession on our operations. If we do, it will weigh us down, and we will not be able to provide basic services,” Adebayo said.
He concluded that the outlook for the industry is positive, with expectations of attracting more investment, creating jobs, and having a positive impact on other sectors.
