TheNewsGuru

Tag: Tarrif Hike

  • Why network providers are planning tariff hike

    Why network providers are planning tariff hike

    Network providers in the country have all agreed to a cost-reflective tariff in view of present extant economic realities.

    Their resolve to increase tarrif soon was contained in a statement jointly released by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) on Thursday. The statement was co-signed by ALTON’s Chairman, Gbenga Adebayo; and ATCON’s President Tony Emoekpere.

    The telcos called upon the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry.

    According to them, telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.

    The statement reads: “Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last (11) years, primarily due to regulatory constraints.

    “For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.

    “ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability,” the statement partly read.

    Regarding the Nigerian Communications Commission (NCC), the telcos also said regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector.

    “Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions,” the statement added.

  • Electricity Tariff Hike: Only 1.5 million Nigerians will be affected – FG

    Electricity Tariff Hike: Only 1.5 million Nigerians will be affected – FG

    The Federal Government of Nigeria has assured that the increase in electricity tariff hike will only affect a small segment of the consumers – 1.5 million.

    A recent hike in electricity tariff for Band A customers – people who enjoy at least 20 hours per day – had triggered conversation among Nigerians many of whom claim the country is still grappling with the effects of the removal of fuel subsidy and the ballooning inflation.

    However,  the Minister of Power Adebayo Adelabu who recently hinted about the Federal Government’s push to stop electricity subsidy said the hike won’t affect the majority of Nigerians.

    “From the policy formulation perspective, the recent increase in tariff for only Band A customers which is just 15 per cent of electricity consumers in Nigeria. As of the latest statistics, there are a little about 12 million customers in the sector and this [tariff hike] would only affect about 1.5 million customers,” he said.

    “The remaining 10.5 million customers will continue to enjoy the government’s subsidy at about 70 per cent.”

    Nigerians are battling a steady rise in inflation levels pegged at 31.70 percent according to the National Bureau of Statistics (NBS)

    But Adelabu said while the government is eyeing a “cost-reflective” tariff for electricity users, the realities of the country’s economy informed the decision not to totally remove subsidy on electricity.

    “The government is so sensitive to the pains of the people; to the sufferings of the people and we are not ready to aggravate this suffering any longer which is why we said it must be a journey rather than a destination,” the minister said.