Obafemi Banigbe, 9mobile CEO, has added his voice to the ongoing discussion on the proposed tariff hike, highlighting the telecom industry’s critical role in Nigeria’s economic growth.

He said “The telecom industry is a critical enabler of economic growth, but we are facing unprecedented challenges. We must find a balance between affordability and sustainability to ensure the industry remains viable and continues to provide quality services to Nigerians. The current situation has not achieved that balance, which is why we are having this conversation about sustainability,”

According to him, the industry is facing significant challenges, including macroeconomic headwinds, rising operational costs, and declining profitability. He emphasized that these challenges threaten the industry’s sustainability and ability to invest in infrastructure and quality of service.

“As you can imagine, both our capital and operational costs have risen dramatically, mainly because many of these costs are denominated in foreign currency or indexed to it, while our revenues are in local currency.

For instance, the Naira, which was previously around 400 to 450, has now officially surpassed 1,500—representing a nearly 350% increase in just the past two years.

This foreign exchange devaluation has caused our costs to surge. Even though the industry is seeing growth in top-line revenue, the increase in local currency revenue has not kept pace with the rising cost base,” he explained.

Banigbe’s comments come as the telecom industry continues to navigate the complexities of the proposed tariff hike. While some stakeholders have expressed concerns about the potential impact on consumers, others have argued that the hike is necessary to ensure the industry’s long-term sustainability. The telco chief said that if the sector does not remain viable, customers will not receive the services they expect.

Drawing from 9mobile’s experience, he pointed out that a lack of investment in recent years has led to a decline in service quality, causing customers to switch to competitors that offer better quality.

He stressed that this situation poses a significant threat to the industry’s sustainability.

“What we are saying is that every business must generate enough revenue to cover its costs and allow for reinvestment into the business. If we fail to generate sufficient revenue, we will have no choice but to borrow, either from shareholders or the capital market.

“Over the past two years, this is what many of us have been forced to do. However, this is not sustainable in the long term, as it will eventually become impossible to continue borrowing without a clear plan for repayment.”

Social media giant Meta announced Tuesday, January 7, a major shift in its content moderation policies, including ending its third-party fact-checking program in the United States.

“We’re going to get rid of fact-checkers and replace them with community notes similar to X (formerly Twitter), starting in the US,” Meta Founder and CEO Mark Zuckerberg stated on social media.

Zuckerberg justified the change, claiming “fact checkers have just been too politically biased and have destroyed more trust than they’ve created, especially in the US.”

Meta’s announcement echoed criticisms from Republicans and X-owner Elon Musk, who have accused fact-checking initiatives of censorship.

The billionaire added, “Recent elections feel like a cultural tipping point towards, once again, prioritizing speech.” His remarks came amid efforts to rebuild ties with US President-elect Donald Trump, including a $1 million donation to Trump’s inauguration fund.

Zuckerberg also revealed that Meta platforms, including Facebook and Instagram, will simplify their content policies and remove several restrictions on topics such as immigration and gender, arguing they are “out of touch with mainstream discourse.”

Trump has previously criticized Meta and Zuckerberg, accusing the company of liberal bias. His Facebook account was suspended following the January 6, 2021, Capitol attack but was reinstated in early 2023.

In a further attempt to mend relations with Trump, Zuckerberg recently dined with the former president at his Mar-a-Lago resort in November.

Additionally, Meta added Ultimate Fighting Championship (UFC) President Dana White, a known Trump ally, to its board of directors. Meta further announced it would reverse its 2021 policy of reducing political content on its platforms.

The company will instead allow users greater control over the amount of political content they see across Facebook, Instagram, and Threads.

AFP currently collaborates with Facebook’s global fact-checking program, operating in 26 languages with around 80 organizations providing fact-checks for Facebook, WhatsApp, and Instagram.

Airtel Nigeria has said the telecom operators could not go on without tariff adjustment as the cost of operation has gone up by 300 percent.

According to Dinesh Balsingh, chief executive officer of the company, the call for the upward review of tariffs in the telecom sector has to be honoured of the operator must do their business in the country without many problems.

Balsingh, who stated this in an op-ed, said the adjustments are critical for maintaining high-quality services and enabling further advancements in Nigeria’s digital transformation journey.

“For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300% in the last 18 to 24 months alone.

“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,” Balsingh said.

The Airtel CEO also underscored the significant investments required to maintain and expand telecom infrastructure, which is pivotal to supporting Nigeria’s digital economy.

“The increasing demand for digital services across sectors such as education, banking, and healthcare requires us to continually upgrade our networks to deliver more capacity and improve service quality.

“These investments come at a cost, one that must be shared proportionally to guarantee long-term viability,” he said.