Abuja, Jan. 23, 2025 – The Arewa Youth Assembly says the 50% tariff hike in the telecom sector will open up the sector for robust growth and investment.
It said the tariff increase was long overdue and had become necessary.
The group said this in a statement signed by its Speaker, Mohammed Salihu Danlami
It said the approval of the new tariff was also an opportunity for the Nigerian telecommunication Commission (NCC) to insist on fairness, transparency, and accountability in the sector.
The group, however, advised the NCC to ensure the proceeds from the tariff hike will be used to improve service delivery in the sector.
It said the support of most Nigerians for the tariff adjustment was on the condition that service quality would be improved.
The group called for calm and understanding from Nigerians, noting that they expect improved growth in the telecom sector, greater protection of customers, improved efficiency of telecom services and ultimately, the sustainability of Nigeria’s telecommunication sector.
The statement reads in parts: “The telecommunication sector, which employs millions of Nigerians directly and is responsible for powering other sectors of the country, is the only sector that has maintained the status quo in terms of the price of its services despite the skyrocketing of the prices of basic requirements for its operations, such as diesel, power, and even manpower costs.
“The industry was near the point of collapse. The global rise in inflation and rise in the cost of its operation, coupled with foreign exchange high costs plus increased network maintenance expenses, was rendering telecommunication companies ineffective in delivering services to Nigerians.
“No serious regulator that understands the need for prices to be market reflective would have folded its arms to allow such a collapse.
“Furthermore, this tariff adjustment will help the operators to purchase new equipment to enhance the country’s telecommunication infrastructure.
“It would also re-energise the sector in a way that would lead to a surge in investments.
“This will ultimately translate to improved network quality, expanded access, and a better experience for consumers.
“We at the Arewa Youth Assembly are hopeful that the sector will grow beyond expectations, creating more opportunities for our people to get jobs in telecoms.
“It is ironic that those complaining of tariff increase are the same ones who are complaining of poor service delivery.
“They are unaware that telecommunication companies cannot improve their infrastructure to meet growing demand without having cost-reflective prices. To address Quality of Service problems, they need a new injection of funds.”
