Nigerian telecommunications operators have proposed a 100% increase in tariffs to address escalating operational costs driven by inflation and rising service delivery expenses. The proposal, submitted to the Nigerian Communications Commission (NCC), was disclosed by Karl Toriola, Chief Executive Officer of MTN Nigeria, during an interview on Arise TV on Thursday.
Toriola highlighted that the tariff adjustment is crucial for the industry’s sustainability as it grapples with significant financial pressures. However, he noted the uncertainty surrounding the NCC’s approval of such a substantial hike.
“We’ve put forward requests for approximately 100% tariff increases to regulators. I doubt they’ll approve that quantum of increase because they are highly sensitive to the current economic situation in the country,” Toriola said.
He stressed that the focus is on ensuring the long-term viability of the telecom sector, not short-term profitability. According to Toriola, rising costs for diesel, power generation, and raw materials have severely impacted telecom operators, with inflation and exchange rate volatility exacerbating the financial strain.
“We’re united with policymakers, regulators, and industry stakeholders like the Chairman of ALTON, Gbenga Adebayo, to address these challenges. Without a sustainable industry, the broader economy and the well-being of the people will suffer,” he added.
The proposal comes amidst warnings from telecom operators about imminent service disruptions if tariffs are not adjusted. Earlier this week, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) issued a statement describing the sector as “under siege” due to unrelenting operational cost pressures.
ALTON Chairman Gbenga Adebayo noted that despite soaring costs, tariffs have remained unchanged, leaving operators struggling to maintain quality services and expand their networks. He warned that failure to adjust tariffs could lead to service shedding, limiting telecom services in certain areas.
The first call for a tariff adjustment was made in April 2024, but no significant progress has been achieved since. Operators now emphasize the urgency of revising tariffs to ensure the continued delivery of reliable telecom services across Nigeria.
