Telecommunications companies under the auspices of the Association of Licensed Telecommunications Operators of Nigeria have expressed concern about rising diesel prices and insecurity, both of which they claim have had a negative influence on their operating costs.
Mr Gbenga Adebayo, President of ALTON, stated during a press conference that telecoms’ network design, operating expense, and projection plans are all based on diesel pricing.
Adebayo stated that the government must save the sector since operators may have no choice but to launch a price review process. He went on to say that telcos are having trouble finding diesel and transporting it to their premises.
“Diesel is now very expensive, from N250 to over N700. All network planning, operational expenses, and planned projection for the year is based on the fact diesel prices. This has increased. Today, you know the implication of that. This is one problem; cost has gone up.
“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.”
Adebayo concluded by saying that if network providers are unable to get any form of intervention from the government, they would approach the regulator to push for realistic pricing, which would reflect the dynamics and reality of the business climate.