After MTN, 9mobile CEO Reacts to FG’s 50% Telecom Tariff Increase
- 9mobile’s CEO Obafemi Banigbe has reacted to the decision by the NCC to approve a 50% tariff increase
- Banigbe believes that the tariff adjustments will address financial constraints and improve service quality
- He also said that the tariff increase helps combat rising operational costs and ensures telecom industry sustainability
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Obafemi Banigbe, the Chief Executive Officer of 9mobile, has commended the decision of the Nigerian Communications Commission to approve a 50% tariff adjustment.
According to Banigbe, the tariff adjustment will enable operators to reinvest in critical infrastructure upgrades and capacity expansion.
He noted that for years investment in the sector has been delayed due to financial constraints.
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Banigbe added that it would also allow operators to fulfil obligations and capital commitments necessary for future growth.
His words:
“Without this adjustment, the industry risked a decline in service quality due to insufficient funding.
“This decision enables us to replace outdated equipment, expand our network to underserved areas, and enhance the overall customer experience."
ThisDay reports that the CEO also said the increase would provide a much-needed boost for 9mobile’s ongoing business transformation, including modernising network infrastructure, expanding coverage, and improving digital platforms.
Banigbe said that the tariff adjustment was a strategic measure to bridge the funding gap exacerbated by rising operational expenses, many of which were denominated in foreign currency.
He said that the company remained committed to investing in infrastructure that would deliver reliable and innovative services to its customers, Punch reports.
Banigbe stated:
“Our focus remains on empowering Nigerians through connectivity, expanding access, and supporting the nation’s vision of becoming a leading digital economy in Africa."
He said the telecoms industry had previously advocated for a substantial tariff review to combat surging operational costs, driven by inflation, skyrocketing energy prices, and a currency devaluation exceeding 300 per cent.
“The industry’s initial request called for a larger increase of up to 100%. But the NCC’s approval of a 50% adjustment represents a balanced approach to safeguarding affordability for consumers while addressing industry sustainability concerns."
He said 9mobile was poised to further strengthen its reputation as a customer-centric, quality-focused service provider, ensuring that Nigerians remain connected and empowered in an increasingly digital world.
PoS operators to hike charges
Legit.ng reported that Point of Sale (PoS) operators in Nigeria are considering another service charge increase after the Nigerian government approved a 50% tariff hike for telecommunications companies.
The operators stated that the 50% tariff increase by the telcos will affect their profit margins, as they rely on mobile data for their operations.
Ogunbayi Ganiyu, the national publicity relations officer of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), explained that the impact of the tariff hike will heavily affect businesses that rely on telecom services, especially mobile data, for their operations, leading to an increase in service charges.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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