TELECOMMUNICATION operators (Telcos) in Nigeria are thinking about introducing different pricing plans for different regions of the country. They say this is because the challenges and costs of running their businesses vary significantly from state to state.
Currently, phone companies in Nigeria have a single national tariff for their services, meaning everyone pays the same amount no matter where they live. However, the telcos argue that this system doesn’t account for the fact that some states have higher operating costs due to issues like attacks on their equipment and multiple taxes.
At a recent forum in Lagos on Saturday, March 22, the telecom operators explained that a regional pricing system would allow them to charge more in states where it’s more expensive to operate and potentially offer better deals in states where it’s easier to do business.
Gbenga Adebayo, the head of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), specifically pointed out that the high cost of doing business in some states is a major concern and increases their expenses. He suggested that if negotiating with certain states to reduce these costs is impossible, then the added expense of operating there should be reflected in the service prices in those areas.
“We may have to reconsider the issue of our national tariffs and look at regional tariffs. If you are aware that the cost of doing business is high in a particular state and it’s impossible to negotiate with them, factor the cost of deployment in those areas into the cost of providing services,” he said.
Tony Emoekpere, the President of the Association of Telecommunications Companies of Nigeria (ATCON), agreed that the current national tariff is unfair because operational costs are not the same across the country. He believes that states that make it easier for telecom companies to operate should be rewarded, while those that create difficulties should see higher service costs.
“If it costs me extra to haul diesel from one part of the country to another, I should be able to add that cost to the service or you compensate me for that by making your environment attractive for me to operate,” he said.
Earlier at the conference, the organiser, Omobayo Azeez, while speaking on the theme “Strengthening Protection of Critical Information Infrastructure through Proactive Implementation and Strategic Coordination”, emphasised the need for cooperation among stakeholders to protect Nigeria’s digital economy. He highlighted the recent signing of the Critical National Information Infrastructure (CNII) Order by President Bola Tinubu as an important step in strengthening the country’s digital infrastructure.
It’s worth noting that the Nigerian Communications Commission (NCC), the regulatory body for the telecom industry, recently approved a 50 per cent increase in tariffs for telecom operators. This came after years of the companies complaining about rising operational costs.
While the idea of regional tariffs is being considered by the telecom operators, it’s important to remember that the NCC ultimately needs to approve any changes to pricing plans.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.