Telecommunications operators (telcos) in Nigeria are considering introducing regional tariff plans to reflect the varying costs of doing business across different states.
Currently, telecom companies apply a uniform national tariff, charging the same rates for services regardless of location. However, the telcos argue that this system overlooks the significant differences in operational costs across the country, driven by factors such as security challenges, infrastructure damage, and multiple taxation.
At a recent forum held in Lagos on Saturday, March 22, industry leaders explained that a regional pricing structure would enable them to adjust tariffs based on the cost of operations in specific states. This could result in higher rates in states where operating expenses are elevated and potentially lower rates in states with more business-friendly conditions.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, emphasised that the high cost of doing business in certain states has become a major challenge for telecom operators. He argued that if these costs cannot be reduced through negotiation with state governments, they should be reflected in the service charges in those areas.
“We may have to reconsider the issue of national tariffs and look at regional tariffs,” Adebayo said. “If the cost of doing business is high in a particular state and it’s impossible to negotiate with them, then the cost of deployment in those areas should be factored into the service prices.”
President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, supported the proposal, describing the current national tariff as unfair to operators. He noted that operational costs vary significantly across states, making it necessary to adopt a pricing structure that reflects these differences.
“It’s only fair that states which make it easier for telecom companies to operate should benefit from lower costs, while those that impose higher operational challenges should expect higher service fees,” Emoekpere stated.
The proposed regional tariff system is expected to improve the financial sustainability of telcos while encouraging state governments to create more business-friendly environments. However, the plan could face regulatory hurdles, as the Nigerian Communications Commission (NCC) currently mandates a standard national tariff for telecom services.
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