Airtel Nigeria has stated that a tariff increase is necessary to maintain and improve its services in the face of rising operational and investment costs, defending its recent application to the federal government for a tariff review.
The telecom firm cited rising operational costs, significant capital investments, and the need to sustain quality telecommunications services as the driving factors necessitating the push for the tariff increase.
In a press statement recently released by Dinesh Balsingh, the Managing Director/CEO of Airtel Nigeria, the telecommunications company explained that the current economic realities, including a sharp increase in the exchange rate and rising energy costs, necessitate a review of tariffs, which have remained unchanged for the past 10 years.
Airtel, in the release titled ‘Navigating the Path to Sustainable Telecom Services for Subscribers’, noted that the demand for digital services in sectors like education, banking, and transportation has skyrocketed, necessitating massive investments to upgrade networks for 5G technology, data security, and enhanced connectivity.
The company noted that the cost of these investments, sourced from international markets, has more than tripled due to the depreciation of the naira against the US dollar, rising from approximately N500 to over N1,600 in the past three to four years.
According to Airtel, operational expenses have surged by over 300% in the last 18 to 24 months, with energy costs accounting for the largest share of expenses.
The firm added that it also faces ongoing infrastructure challenges, including frequent fibre cuts and vandalism, which require substantial financial resources to repair and maintain.
READ MORE:Navigating the Path to Sustainable Telecom Services for Subscribers
Despite these challenges, Airtel said it has maintained its tariffs at the same level for over 10 years. The company stated that this approach is no longer sustainable if it hopes to continue expanding its network, improving service delivery, and meeting the growing demands of subscribers.
It added that it has applied to the government for a tariff adjustment to address the financial strain and ensure the sustainability of its services. “It is not a decision taken lightly but one borne out of the need to guarantee continued investment in network expansion, technology upgrades, and improved service delivery,” the statement read.
Airtel reiterated its commitment to delivering quality services, driving economic growth, and being a reliable partner in Nigeria’s digital transformation.
The company stated that while tariff adjustments are warranted, it is sensitive to affordability and believes adjustments should be gradual.
It stressed that revised tariffs will empower operators to invest in capacity, expand coverage, improve network security, and enhance service quality while ensuring Nigeria remains competitive in the global digital landscape.
Airtel urged stakeholders, including customers, regulators, and partners, to recognise the importance of building a resilient telecommunications ecosystem.
