Airtel CEO Urges Nigerian Govt to Approve Call and Data Tariff Hike, Gives Reasons
- Airtel Nigeria's CEO has supported calls for the federal government to consider telecom companies' plea to review tariffs
- Telecommunication companies are requesting a 100% increase in data and call tariffs in the first quarter of 2025
- He noted that tariffs have remained unchanged for a decade despite the rising cost of operations and the need to improve infrastructure
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Dinesh Balsingh, Airtel Nigeria's Chief Executive Officer, has called on the Nigerian Communications Commission to approve an increase in call and data tariffs.
According to him, the rising operational costs and inflationary pressures in the last 24 months have made it difficult for telecommunication companies to sustain quality service.
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Airtel boss case for new telcom tariff
Balsingh, in an open letter seen by Legit.ng, expressed concerns that telecom tariffs in Nigeria have remained static for over a decade despite significant increases in operating expenses.
He noted that the current tariff is no longer sustainable.
His words:
“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300 per cent in the last 18 to 24 months alone.
“To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities.”
The CEO also pointed out that sustaining and expanding telecommunications infrastructure requires substantial investment, especially as the demand for digital services grows across sectors like education, banking, and healthcare, Punch reports.
He added:
“The increasing demand for digital services requires us to continually upgrade our networks. These investments come at a cost, one that must be shared proportionally to guarantee long-term viability."
Importance of tariff increase
Airtel's boss explained that the proposed tariff adjustments aim to ensure the sector’s sustainability while delivering significant improvements in service delivery.
He said the changes would enable the expansion of network coverage, bolster network security, and support the adoption of advanced technologies, all of which would enhance connectivity for Nigerians.
Balsingh stated:
“By enabling us to expand coverage, strengthen network security, and introduce cutting-edge technologies, these adjustments will directly enhance the quality of connectivity for Nigerians.
"Our priority is to ensure that no one is left behind in the country’s digital transformation journey.”
ThisDay reports that Airtel's CEO said tariff adjustments should be made gradually because of the low financial status of customers.
He said.:
“Our commitment to quality service remains unwavering.
“While significant tariff adjustments have become necessary, we understand the importance of gradual implementation to support our customers’ financial positions.
"This step will enable us to invest in capacity, expand coverage, and enhance service delivery, ensuring Nigeria remains competitive in the global digital landscape.
“This is about ensuring the long-term sustainability of the telecom sector while contributing to Nigeria’s development as a leading digital economy on the continent."
MTN CEO propose a 100% increase in tariff
Earlier, Legit.ng reported that Karl Toriola, CEO of MTN Nigeria, explained in an interview why it is important for the NCC to approve a tariff hike.
According to Toriola, the sector is grappling with sustainability challenges, warning that failure to adjust tariffs could jeopardize the industry’s survival.
However, the CEO expressed concerns that the Nigerian Communications Commission will approve the proposal remains uncertain.
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Source: Legit.ng
