Telcos propose regional tariffs for calls and data across states

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Telecommunication companies in Nigeria are considering the implementation of different pricing for calls, data, SMS, and other telecom services across various states.

The rationale behind this proposal is to address the challenges posed by multiple taxation and varying business environments in different states.

The Chairman of the Association of Licensed Telecoms Operators of Nigeria, Mr. Gbenga Adebayo, made this disclosure during the ‘Nigeria eGovernment Summit 2023′ held in Lagos.

He emphasized that the existing national tariff structure is no longer suitable, given the disparities in the cost of providing services across states.

Adebayo explained, “We have been talking about multiple taxation for many years.

It may not be appropriate to continue to have one national tariff because if the cost of providing services in one region is high, services in that region should reflect the cost of service provision.

If you have a state that has introduced 50 different taxes for the operator, the telcos need to pass it on to the subscribers there. Otherwise, we would remain on this issue for many years to come.”

He further highlighted that this proposal, which is pending approval from the Nigerian Communications Commission (NCC), aims to mitigate the challenges posed by multiple taxes and ensure fairness to states with business-friendly environments.

Adebayo pointed out that tariff variations across different geographical regions are common worldwide due to varying regulations and rules.

This move towards regional tariffs is expected to address these challenges and create a more equitable pricing system based on the local business environment.