Data, Call Costs To Rise As Telcos Seek 40% Tariff Hike

Telecommunication companies under the Association of Licensed Telecom Operators of Nigeria (ALTON), have demanded upward reviews in voice calls, short message services (SMS) and data costs.

ALTON said this in a letter addressed to the Nigerian Communications Commission (NCC), citing the rising cost of running business.

According to ALTON, the proposed upward review of the price of calls will increase from N6.4 to N8.95, while the price cap of SMS will increase from N4 to N5.61.

The group said this had increased energy costs, increasing their operating expenses by 35 percent.

It added that the introduction of the recent excise duty of five percent on telecom services had further increased the burden of multiple taxes and levies on the industry.

 According to them, the telecommunication industry has been financially impacted following the nation’s economic recession in 2020 and the effect of the ongoing Ukraine/Russia crisis.

The Group claimed that this resulted in a 35 percent rise in their operational expenses due to an increase in energy costs.

They went on to say that the recent imposition of a 5 percent excise charge on telecom services had added to the industry’s burden of many taxes and levies.

Speaking on the proposed hike, ALTON’s Head of Operations, Gbolahan Awonuga, said the rising cost of operation in the country coupled with the energy crisis occasioned by the Russian, Ukrainian conflict prompted a request for an increment in the cost of services offered by telcos.

Awonuga said in view of the foregoing, ALTON considers it expedient for the telecommunications sector to undergo periodic cost adjustments.