The Association of Licensed Telecom Operators of Nigeria, ALTON, has justified the recent 50 per cent hike in telecom tariffs, citing the need to adapt to rising economic pressures and ensure the sustainability of the industry.

The chairman of the Association, Gbenga Adebayo, on Tuesday in Lagos, noted that the tariff increase was not taken lightly but rather a necessary response to the significant economic challenges facing telecom operators.

“The industry has been grappling with escalating costs, including diesel, energy, and inflation, without a corresponding adjustment in tariffs for 12 years.

“This has resulted in unsustainable operational costs, prompting telecom operators to seek a tariff review to maintain the quality of their services.

“The 50 per cent tariff hike was approved by regulatory authorities after a thorough review of economic indices, and is in line with the provisions of the Communications Act,” Adebayo said.

He dismissed concerns that the increase was unconstitutional, stressing that the process followed due regulatory procedures.

ALTON boss assured that the tariff adjustment would ultimately benefit consumers, as telecom operators would be able to enhance service quality, optimise networks, and attract more investments.

Adebayo also highlighted the impact of foreign exchange instability on the industry, noting that many telecom contracts were signed at previous exchange rates while operators must now fulfill obligations at higher rates.

He called for stability in the foreign exchange market to support industry growth, emphasising that a strong telecom sector was essential for economic stability.