Following the devaluation of the naira and the unification of foreign exchange market, telecommunication companies operating in Nigeria, have indicated upward adjustment in the prices of their services as a buffer against the current market realities.
The review of prices by the telecommunication companies, according to the President of Licensed Telecom Operators of Nigeria, Gbenga Adebayo, is geared towards the sustainability of the industry.
Adebayo disclosed that the price adjustment was necessary to reflect the cost of production.
“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,” Adebayo said.
According to Adebayo, the telecoms just like other sectors, is affected by current developments in the economy, saying “when the inputs cost goes up, prices will also go up. 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.”
He added: “we have been discussing this before the end of the last administration, and in actual fact, approval was granted for price review at the time. But we had some interventions that asked it should be put on hold, which again does not reflect the reality of what we face. So, it is only normal to expect that there will be a price review.
“But, it’s not only FX that will influence this. It is in addition to other elements and parameters of the cost that we had mentioned in our previous submission to get a review of rates. This other condition will constitute further information, reason, and basis to justify the review of prices.”
It will be recalled that in 2022, telecoms wrote a letter to the NCC requesting for a 40 percent increase in the prices of calls, SMS and data due to a rise in the cost of operations.
According to reports, telecoms wanted to raise the floor price of calls from N6.4 to N8.95 and the price cap of SMS from N4 to N5.64.
The removal of fuel subsidy by the Tinubu-led government on May 29, 2023, has greatly affected the prices of goods and services in the country, and this has not left out the telecommunication industry whose services are vital for the Nigerian economy.