LCCI: Telecom tariff hike may strain consumers… especially low-income earners

The Lagos Chamber of Commerce and Industry (LCCI) has expressed concerns that the recent increase in telecommunications tariff could impose additional financial strain on consumers, particularly low-income earners.

On January 20, the Nigerian Communications Commission (NCC) granted approval to telecommunications companies (telcos) to implement a 50 percent tariff increase.

In a statement on Monday, Chinyere Almona, LCCI’s director-general, acknowledged that the current operating environment in the telecommunications sector has become too expensive for the telcos to operate profitably.

However, Almona said while the tariff adjustment may provide relief for operators, it raises concerns about affordability among consumers.

“Factors such as rising energy costs, the increasing price of network equipment, inflation, and currency depreciation have placed a heavy financial burden on the operators. Telecom providers have resorted to increasing tariffs to mitigate the rising cost,” Almona said.

“The recent hike in telecoms tariff has attracted mixed reactions. While this hike may offer relief for the operators, it risks placing additional strain on consumers, particularly those in lower-income brackets.”

The LCCI DG stressed the need for improved service delivery and stronger regulatory oversight, calling for increased investment in critical digital infrastructure to support Nigeria’s goal of achieving a $1 trillion economy.

‘PRIORITISE DELIVERING QUALITY SERVICES’

Beyond the tariff hike, Almona urged telecom operators and regulators to prioritise delivering quality services that enhance operational cost efficiency for businesses and facilitate the automation of government services.

She reiterated the chamber’s call for reducing human involvement in regulatory processes such as product licencing, permit approvals, certification issuance, and port operations.

“These activities can be automated for cost-effectiveness for businesses and better efficiency on the part of the government,” the LCCI DG said.

“The emerging innovative landscape in food production, surveillance technology for security, citizens’ social engagement, and the exploits of artificial intelligence will all depend on a robust digital ecosystem that is comparable with advanced economies.  

“A significant item for inclusion in the rebasing of Nigeria’s GDP is the activities in the information and communications technology (ICT) sector. This sector recorded resilient growth during the COVID-19 pandemic and has also led other sectors in the post-pandemic recovery and stability.”

According to Almona, more government attention and funding should be directed toward the digital and creative industries to support business operations and cost optimisation.

She said Nigeria’s digital economy must be empowered to serve as a catalyst for economic growth and a driving force for innovation and new opportunities.

Also, the LCCI DG called for continuous engagement with key stakeholders to ensure mutually beneficial outcomes.