Nigeria’s communication sector records the lowest inflation rate of 2.3% year-on-year in November 2024, reflecting stability in prices despite the broader economy’s challenges. This marks a slight decrease from October’s 2.5%, according to the latest data from the National Bureau of Statistics (NBS). In contrast, overall inflation reaches a 26-year high of 34.6%, driven by steep increases in essential goods and services.
While telecom prices remain steady, other industries experience significant hikes:
- Food and Non-Alcoholic Beverages: 39.9%
- Housing, Water, Electricity, and Fuel: 29%
- Transportation: 30.5%
- Clothing and Footwear: 20.2%
- Restaurants and Hotels: 34.8%
The communication sector also posts a month-on-month inflation rate of just 0.3%, maintaining its reputation as the most stable in pricing across all industries.
Despite low inflation, telecom operators face increasing operational costs. Leaders in the industry argue that prices have remained unchanged since 2013, even as energy prices, equipment costs, and other operational expenses soar. The Association of Licensed Telecom Operators of Nigeria (ALTON) continues to advocate for price adjustments to align with rising costs, emphasizing that the sector is being constrained by regulatory policies.
Tensions between operators and regulators escalate as stakeholders highlight disparities in pricing decisions. Recent approval of a significant subscription price hike by an international service provider sparks complaints from local operators, who claim that their own requests for adjustments have been consistently denied. Regulators encourage telecom companies to adopt efficiency measures and expand their user bases to mitigate costs instead of raising prices.
As the third-largest contributor to Nigeria’s economy, the telecom industry remains critical for national growth and digital transformation. Maintaining affordability while ensuring service quality poses a balancing act for stakeholders as the sector navigates rising costs and regulatory constraints.
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