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Telecom companies in Nigeria have expressed concerns over the sustainability of current prices for calls, data, and other telecommunication services. The Chairman of the Association of Licensed Telecommunication Operators of Nigeria, Gbenga Adebayo, highlighted the challenges faced by the industry, such as rising energy costs and limited access to foreign exchange. Adebayo emphasized the need for a conversation to review prices in order to ensure the continued delivery of communication services in the country.

According to Adebayo, the current pricing regime of the industry is not viable as companies are selling below cost. He stressed the importance of allowing market forces to determine prices and called for a more realistic pricing offering. Telcos have been pushing for price increases to offset the rising costs of operation, including the cost of diesel and the devaluation of the naira.

During his address, Adebayo also commended the appointment of the new Minister of Communications, Bosun Tijani. However, he emphasized that the independence of the Nigerian Communications Commission (NCC) is crucial for the success of the ICT sector in Nigeria. Adebayo attributed many of the industry’s challenges to the politicization of policies and interventions. He highlighted the issue of USSD debt with banks as an example of a commercial agreement that became entangled in political intervention.

The Executive Vice Chairman/Chief Executive Officer of the NCC, Prof. Umar Danbatta, noted that the telecom sector is home to two of Nigeria’s most valuable listed companies with a collective market capitalization of over N10.45tn. He also revealed that the NCC generated revenue of over 0m from the auction and grant of 3.5GHz Spectrum band licenses to three operators for the deployment of 5G services in the country in 2021 and 2022.

Danbatta emphasized the importance of embracing indigenous content and value creation within the telecoms value chain to sustain and improve the quality of service. He also highlighted the growth of the local SIM card industry, which is now valued at N55bn following the ban on foreign SIM cards last year.

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