Telecommunication firms have said they are working with their regulator, the Nigerian Communication Commission, to review the prices of their services to reflect prevailing market realities, especially the recent unification of the foreign exchange market, The Punch wrote.
The Punch said that according to the telcos, a price review was needed for their industry to remain sustainable. The president, Association of Licensed Telecoms Operators of Nigeria, Gbenga Adebayo, disclosed this to The Punch in an interview. He explained that the price review is needed to reflect the cost of production.
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This is following a new FX policy regime introduced by the Central Bank of Nigeria. The apex bank recently asked Deposit Money Banks to remove the rate cap on the naira at the official Investors and Exporters’ Window of the foreign exchange market, to enable the free float of the naira against other foreign currencies.
This is to bridge the gap between the official and parallel rates of the naira. This move, according to Adebayo, has tipped the scale in favour of a price review in the industry.
He told The PUNCH, “For our industry to remain sustainable, our prices have to reflect the cost of production. This goes without saying that we will also review rates at the appropriate time after consultation with all the stakeholders to reflect the current cost of inputs.”
Adebayo noted that telcos are not isolated or immune from what is happening in the economy. He stated, “When the input cost goes up, prices will also go up. So, in order for the industry to be sustainable, and for us to continue to maintain the grade of service that we deliver, it is only realistic that we review prices.
“We are providing all the necessary information to the regulators.”