Nigerian telecoms companies have proposed a 100% tariff increase across voice, data, and digital services to the Nigerian Communications Commission (NCC) and are now awaiting approval. The proposal, which has already been submitted, aims to address rising operational costs such as inflation and increasing service delivery expenses.
MTN Nigeria’s CEO, Karl Toriola, revealed the proposal during an interview on Arise TV on Thursday. However, Toriola expressed uncertainty about whether the NCC would approve such a significant increase, acknowledging the sensitivity of the current economic situation in Nigeria.
According to Toriola, the proposed tariff hike is critical for the long-term sustainability of the telecom industry, which is facing financial strain due to escalating operational costs. “We’ve requested around 100% tariff increases from regulators. I doubt they will approve such large increases because they are very sensitive to the current economic situation,” he said. Despite this, Toriola remained hopeful that regulators would consider the realities of the sector when making their decision.
The CEO stressed that the focus is on ensuring the industry’s long-term viability, rather than prioritizing short-term profits. He added, “We are united with policymakers, regulators, and industry stakeholders, all concerned with fundamental issues like human rights and the economy. Without a sustainable telecom industry, the broader economy and people’s well-being will suffer.”
This proposal comes at a time when telecom companies are grappling with increasing operational costs driven by inflation, exchange rate fluctuations, and the rising prices of key inputs like diesel, power generation, and raw materials. Toriola highlighted how these challenges are making it difficult for many operators to maintain profitable operations.
Earlier this week, operators warned that service disruptions could occur unless tariffs are adjusted to reflect the rising costs. Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the sector as being “under siege” due to soaring operational costs. He pointed out that despite these rising costs, tariffs have remained stagnant, leaving operators struggling to provide quality service and expand networks.
Adebayo warned that without an immediate tariff adjustment, telecom companies may be forced to reduce service availability in some areas. The call for tariff adjustments was first made in April 2024, but little progress has been made since then.
In response to the ongoing financial strain, ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) issued a joint statement urging the Federal Government to engage in constructive discussions with industry stakeholders. They emphasized the need for a tariff framework that balances consumer affordability with operators’ financial sustainability, after 11 years of tariff stability.
With the survival of the telecom sector at risk, operators are calling for urgent action from all stakeholders to preserve the future of this crucial industry.
