The Nigerian Communications Commission (NCC) has revealed that the operating costs of telecommunication companies in Nigeria have increased.
The ‘2021 Subscriber/Network Data Annual Report’ released by the commission shows that operating costs rose from N1.4tn in 2020 to N1.66tn in 2021.
The report read in part, “Total operating cost for the mobile network operators increased from N1,395,000,000,000 in 2020 to N1,658,235,000,000 at the end of 2021. This illustrates an increase of 18.74 per cent from the figure reported in 2020.”
Telecommunication providers under the aegis of the Association of Licensed Telecommunications Operators of Nigeria in April 2022 noted that the rise in the price of diesel affected the operational costs.
The operators asked the Federal Government for special interventions.
The President of ALTON, Gbenga Adebayo, while speaking on the price of diesel said operators might have no other choice but to begin a process of price review.
He said, “Diesel is now very expensive, from N250 to over N700. All network planning, operational expenses, and planned projection for the year are based on the fact diesel prices. This has increased. Today, you know the implication of that. This is one problem; cost has gone up.”
Adebayo added that telcos were also struggling with the availability of diesel and the logistics of delivering it to sites.
He added, “We will be approaching the government for some form of intervention. But we are mindful of the high cost of living, and the implication of this on the economy and citizens. And so, we are not going to talk about direct price increases.
“But we will be approaching the government for some kind of intervention to cushion the effect of these changes on us as an industry.”