Nigeria’s Telecom Giants Seek 100% Tariff Hike Amid Soaring Costs
Nigerian telecommunications operators have submitted a proposal to double service tariffs, citing mounting operational pressures. The request, which is currently under review by the Nigerian Communications Commission (NCC), underscores the financial strain on the industry due to inflation, volatile exchange rates, and escalating energy costs.
“Industry at a Crossroads”
Karl Toriola, Chief Executive Officer of MTN Nigeria, disclosed the proposed 100 per cent increase during an interview on Arise TV, highlighting the sector’s struggle to maintain sustainability amidst rising expenses.
“We’ve put forward requests of approximately 100 per cent tariff increases to regulators,” Toriola revealed. “I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country.”
Toriola emphasised that the proposed hike is not about short-term profitability but the long-term viability of the sector. “Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted,” he warned.
Mounting Pressures
The telecom industry, described by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) as being “under siege,” is grappling with unprecedented cost challenges. These include inflation-driven price hikes for raw materials and energy, along with exchange rate instability.
Despite these pressures, tariffs have remained static for over a decade, leaving operators struggling to balance service quality with financial sustainability.
Earlier this week, ALTON Chairman Gbenga Adebayo echoed Toriola’s concerns, warning that unless tariffs are adjusted, operators may be forced to reduce services, particularly in underserved areas.
“The cost of maintaining networks is skyrocketing,” Adebayo said. “If tariffs remain unchanged, we risk limited availability of telecom services, impacting businesses and consumers alike.”
Calls for Urgent Action
The telecom sector first called for tariff adjustments in April 2024, but progress has been sluggish. In a joint statement, ALTON and the Association of Telecommunications Companies of Nigeria urged the Federal Government to convene an urgent dialogue with stakeholders.
The statement stressed the need for a balanced framework that ensures affordability for consumers while enabling operators to remain financially viable.
A Looming Crisis
With the industry at a critical juncture, telecom operators are appealing to regulators and policymakers for decisive action. “We’re united in our commitment to preserve the sector’s future,” Toriola said, adding that failure to act could jeopardiseone of Nigeria’s most vital industries.
The NCC has yet to comment on whether it will approve the proposed tariff hike, leaving the industry and consumers awaiting a resolution to what could become a pivotal moment in Nigeria’s telecommunications landscape.
