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Airtel proposes tariff adjustment to sustain telecom sector amid rising costs

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Airtel Nigeria has called for an adjustment in tariffs, citing a 300 per cent surge in operating costs over the past 18 to 24 months as a significant threat to the sustainability of the telecom sector. The company’s CEO, Dinesh Balsingh, stressed the urgent need for realignment to reflect the harsh economic realities impacting the industry.

In a recent statement, Balsingh revealed that operating expenses have skyrocketed, yet telecom tariffs have remained unchanged for over a decade. This imbalance, he argued, undermines the industry’s ability to sustain its services and expand digital infrastructure.

Nigerian telecom operators, including Airtel, have submitted a proposal to the Nigerian Communications Commission (NCC) seeking a 100 per cent increase in tariffs. According to Balsingh, the adjustment is necessary not only to sustain operations but also to support the increasing demand for digital connectivity in sectors such as banking, education, and healthcare.

“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300 per cent in the last 18 to 24 months alone.

“To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities,” Balsingh explained.

Acknowledging concerns over affordability, Balsingh assured Nigerians that any tariff changes would be implemented gradually to minimize the impact on consumers. He emphasized that the adjustments are designed to enhance service delivery, including network expansion, improved security, and the adoption of advanced technologies.

“By enabling us to expand coverage, strengthen network security, and introduce cutting-edge technologies these adjustments will directly enhance the quality of connectivity for Nigerians. Our priority is to ensure that no one is left behind in the country’s digital transformation journey.”

Balsingh reiterated Airtel’s dedication to driving innovation and fostering inclusive growth. He noted that the company remains committed to supporting Nigeria’s vision of becoming a digital economy leader while addressing the sector’s pressing financial challenges.

“Our commitment to quality service remains unwavering.While significant tariff adjustments have become necessary, we understand the importance of gradual implementation to support our customers’ financial positions.

“This step will enable us to invest in capacity, expand coverage, and enhance service delivery, ensuring Nigeria remains competitive in the global digital landscape,” Balsingh concluded.

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