Telecom Sector Set for Expansion with New Tariff Review
Telecommunications service provider 9mobile has commended the Nigerian Communications Commission (NCC) for approving a 50% adjustment in tariffs, a move aimed at addressing critical challenges in the sector. The Chief Executive Officer of 9mobile, Obafemi Banigbe, described the decision as a timely intervention to sustain the industry’s growth and improve service delivery.
Speaking in a statement on Friday, January 24, 2025, Banigbe emphasized that the tariff adjustment would enable telecom operators to reinvest in vital infrastructure upgrades and expand capacity. “This adjustment will allow operators like us to fulfil capital commitments and address the funding gaps that have delayed crucial projects,” Banigbe said.
Infrastructure Modernization and Network Expansion
The CEO highlighted how the additional funding would be directed toward replacing outdated equipment, enhancing digital platforms, and expanding network coverage to underserved areas. According to him, these investments are critical for 9mobile’s ongoing business transformation and the broader goal of improving customer experiences.
“This decision enables us to modernize our infrastructure, provide better connectivity to rural and urban areas, and ensure Nigerians enjoy reliable services. It’s a step in the right direction for building a digitally inclusive economy,” Banigbe noted.
Mitigating Operational Cost Challenges
Banigbe also outlined the economic pressures that necessitated the tariff review, including surging energy costs, inflation, and a more than 300% currency devaluation. He explained that the telecom industry had previously sought a 100% tariff increase to meet these challenges. However, the NCC’s decision to approve a 50% adjustment reflects a balanced approach.
“The NCC has struck a delicate balance by considering consumer affordability while ensuring the sustainability of telecom operations,” Banigbe said. He added that the review would help mitigate operational challenges while maintaining quality service delivery across the country.
Strengthening Commitment to Digital Transformation
The telecoms provider reaffirmed its commitment to empowering Nigerians through connectivity and supporting the government’s vision of a leading digital economy in Africa. Banigbe expressed optimism about the future, citing plans to invest in innovative solutions and improve service reliability.
“Our focus remains on enabling seamless communication, expanding access to digital services, and driving Nigeria’s digital transformation agenda. This adjustment strengthens our ability to achieve these goals,” he said.
Balancing Industry Growth and Consumer Needs
While industry stakeholders have welcomed the tariff review, concerns remain among consumer advocacy groups about its potential impact on affordability. Banigbe reassured customers that 9mobile remains committed to delivering value while maintaining competitive pricing.
“This adjustment is not just about financial sustainability; it’s about ensuring long-term service quality. We are determined to enhance our reputation as a customer-focused service provider,” he concluded.
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