Nigerian telecommunications companies have requested a 100% tariff increase to address rising operational costs, including inflation and higher service delivery expenses. The proposal, currently awaiting approval from the Nigerian Communications Commission (NCC), was revealed by MTN Nigeria CEO Karl Toriola during an interview with Arise TV on Thursday.
Toriola acknowledged uncertainty regarding the NCC's decision, citing the regulator's sensitivity to the country’s economic challenges. He emphasized that the proposed hike is essential to ensure the telecom industry's sustainability amidst significant financial pressures.
“We’ve submitted requests for approximately 100% tariff increases to the regulators. I doubt they’ll approve such a large adjustment, given their awareness of the economic realities,” Toriola said. Despite the challenges, he expressed optimism that regulators would consider the sector's long-term viability while making their decision.
Toriola highlighted the industry's focus on sustainability rather than short-term profits, stating that the well-being of the broader economy relies on a robust telecom sector. Rising costs, fueled by inflation, exchange rate fluctuations, and increasing energy expenses, have severely impacted operators’ ability to maintain profitability and service quality.
Earlier, telecom operators warned of potential service disruptions unless tariffs are revised to reflect current costs. Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the sector as being under severe financial strain. He warned that without tariff adjustments, operators might be forced to reduce services, limiting availability in some regions.
The first appeal for a tariff adjustment was made in April 2024, but significant progress has yet to be achieved. In a joint statement, ALTON and the Association of Telecommunications Companies of Nigeria urged the Federal Government to facilitate constructive dialogue with industry stakeholders. They stressed the need for a balanced framework that maintains consumer affordability while ensuring the financial sustainability of operators after 11 years of tariff stability.
Operators have called on all stakeholders to act promptly, warning that delays could jeopardize the future of one of Nigeria's most critical industries.
