Why Tariff Review is Pivotal to Nigerias Telecoms Sector’s Growth Amid Economic Downturn – Kalu Aja [Video]

Editor’s note: Renowned financial literacy advocate, Kalu Aja, weighs in on the push by telecom operators in Nigeria, represented by ALTON and ATCON, to drive cost-reflective tariffs, given current economic realities.

The telecom operators in Nigeria, represented by the Association of Licensed Telecommunication Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), have pushed for cost-reflective tariffs.

In their words, in a fully liberalized and deregulated sector like telecommunications (telcos) in Nigeria, the current price-fixing policy is not backed by economic realities, thus eroding investors’ confidence.

They have a point.

The costs of operating any business in Nigeria, especially telecommunications, have increased. For instance, general inflation has led to higher prices for equipment and services, the cost of diesel has risen significantly, the expenses for running generators have increased, and even higher VAT rates on tower leases …