ATCON seeks implementation of FG’s decision on tariff hike in Q1 2025

• The Association of Telecommunication Companies of Nigeria is seeking the implementation of the Federal Government’s decision on tariff hike in the first quarter of 2025
• They said this will enable operators to start planning early
• The association commended the Federal Government’s plans to invest in telecommunication infrastructure

The Association of Telecommunication Companies of Nigeria (ATCON) has commended the Federal Government’s decision to hike telecommunications tariffs and invest in the sector’s infrastructure.

The association also called for the implementation of the government’s decision on the hike in the first quarter (Q1) of 2025 to enable Mobile Network Operators (MNOs) to start planning.

President of ATCON, Tony Emoekpere, told the News Agency of Nigeria (NAN) in Lagos, on Thursday, January 9, that though tariff increase was long overdue as tariff had remained stagnant for years, it was welcome and a work in progress.

He noted that the situation would have worsened if the tariff increase had been delayed longer than now.

Emoekpere said, “Like I said, the issue is a work in progress. Although it’s still a bit late considering how many years the tariff has remained stagnant, a 100 per cent hike will not be a big leap. 

“However, if the Federal Government’s decision had been delayed longer than this, a 100 per cent tariff hike would have been a lot worse. 

“We (Telcos) will have to see what’s best. We have to look at how well to do this work in development.”

Government’s telecoms infrastructure investment

Emoekpere said that the government’s plan to invest in telecommunications infrastructure is practised in other climes and is a welcome decision.

He said as a critical national infrastructure, it is good to have the government invest in it to ensure that they are protected and to boost the operations of the sector.

Emoekpere expressed optimism that vandalisation of telecommunication infrastructure, as has been the case, will reduce to its barest minimum with the government’s involvement.

He said, “Telecommunications is actually a critical national infrastructure, and it is always important that the government have a say in telecommunications infrastructure.

“In other countries, the government still invests in infrastructure. It is also a welcome development.

“This will boost the operations of the sector because if the government has a vested interest in the sector, it will ensure that the infrastructure is actively protected.”

FG agreed to tariff hike

Recall that the Federal Government agreed to implement an increase in telecommunications tariff in response to demands by operators, who cited rising operational and capital costs threatening their profitability and sustainability as reasons.

The Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijan, announced this during a stakeholder meeting with Mobile Network Operators (MNOs) in Abuja on Wednesday, January 8, noting that the increment that would be implemented would not be 100 per cent as requested by telecommunications operators.

Tijani said the new tariffs would be announced to the public by the Nigerian Communications Commission (NCC) soon.

He also highlighted the government’s plans to start investing in telecom infrastructure to deepen connectivity and ensure quality service.

Proceeds from tariff hike will go into infrastructure upgrades, service quality – Telcos

Meanwhile, TheRadar earlier reported that telecommunications operators (telcos) in Nigeria said the proceeds from the proposed 100 per cent tariff increase will be channelled to upgrades of major network infrastructure and service quality.

The Chief Executive Officer of MTN Nigeria, Karl Toriola, disclosed this in a column published in BusinessDay on Monday, January 6.