Home » Airtel CEO Urges Tariff Hike Due to 300% Rise in Costs

Airtel CEO Urges Tariff Hike Due to 300% Rise in Costs

By Ayomide Otitoju

Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, has called for tariff adjustments to address the telecom sector’s long-term sustainability amid surging operational costs. In a statement shared with The Trust on Monday, Balsingh revealed that operating expenses have skyrocketed by over 300% in the past 18 to 24 months, necessitating a review of pricing structures.

Highlighting the economic challenges facing the industry, Balsingh pointed out that tariffs have remained static for over a decade despite rising costs. Nigerian telecom operators have submitted a proposal to the Nigerian Communications Commission (NCC) seeking a 100% tariff increase.

“For over a decade, tariffs have remained unchanged despite the dramatic increase in operating expenses,” Balsingh noted. “In the last 18 to 24 months alone, these costs have surged by over 300%. To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities.”

Sustaining Digital Connectivity
The Airtel CEO emphasized the need for substantial investments to maintain and expand telecommunications infrastructure in response to growing demand across sectors such as education, healthcare, and banking.

“The increasing demand for digital services requires us to continually upgrade our networks,” Balsingh explained. “These investments come at a cost, one that must be shared proportionally to guarantee long-term viability.”

He assured that the proposed tariff adjustments aim to not only sustain the sector but also enhance service delivery. “By enabling us to expand coverage, strengthen network security, and introduce cutting-edge technologies, these adjustments will directly improve connectivity for Nigerians,” Balsingh said.

Consumer-Centric Implementation
Balsingh stressed that the tariff changes would be implemented with affordability in mind to minimize the impact on consumers. He reaffirmed Airtel Nigeria’s commitment to delivering quality services while supporting the country’s ambition to become a digital economy leader in Africa.

“Our commitment to quality service remains unwavering,” he stated. “While significant tariff adjustments have become necessary, we understand the importance of gradual implementation to support our customers’ financial positions. This step will enable us to invest in capacity, expand coverage, and enhance service delivery, ensuring Nigeria remains competitive in the global digital landscape.”

The telecom sector has increasingly played a critical role in Nigeria’s digital transformation, and Airtel Nigeria reiterated its dedication to fostering inclusive growth, innovation, and connectivity for all citizens.

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