Mobile Network Operators (MNOs) in Nigeria have opened discussions with the Nigerian Communication Commission (NCC), the telecommunications sector regulator, for the purposes of reviewing upwards the current tariff rate for their services in view of the current macroeconomic realities in the country.
A news report from The Punch quoted the President of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, as saying that the move was necessary based on the recent unification of the foreign exchange market.
According to the ALTON leader, the review is necessary for the operators to bridge the gap between the official and parallel foreign exchange rates of the Naira and by so doing to cover the cost of their operations and make profit.
He said: “For our industry to remain sustainable, our prices have to reflect the cost of production. This goes without saying that we will also review rates at the appropriate time after consultation with all the stakeholders to reflect the current cost of inputs.
“When the input cost goes up, prices will also go up. So, in order for the industry to be sustainable, and for us to continue to maintain the grade of service that we deliver, it is only realistic that we review prices. We are providing all the necessary information to the regulators,” the industry expert added.
It would be recalled that the Central Bank of Nigeria (CBN) had about a fortnight ago directed Deposit Money Banks (DMBs) and other financial institutions to discontinue the FX rate cap on the Naira at the official Investors and Exporters (I&E) Window of the FX market to allow market forces to determine the local currency’s real exchange rates against foreign currencies.
Available official data indicated that as of April 2023, there were 223.34 million mobile subscriptions in the country.
