Telcos propose 100% tariff hike, await NCC nod
Nigerian telecommunications companies have proposed a 100 per cent increase in service tariffs, citing rising operational expenses as the primary reason.
The proposal, submitted to the Nigerian Communications Commission (NCC), seeks to address the financial strain caused by inflation, exchange rate fluctuations, and escalating energy costs.
Karl Toriola, the Chief Executive Officer of MTN Nigeria, disclosed this during an interview on Arise TV. According to Toriola, the industry’s sustainability is at risk if tariffs are not adjusted to reflect current economic realities.
“We’ve put forward requests of approximately 100 per cent tariff increases to regulators. 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 said.
Despite the uncertainty surrounding the NCC’s approval, Toriola emphasised the need for a balanced approach that safeguards the industry while remaining sensitive to consumers’ financial constraints.
The telecom sector has faced mounting pressure due to increasing costs of diesel, power generation, and raw materials.
A recent statement from the Association of Licensed Telecommunications Operators of Nigeria (ALTON) described the industry as being “under siege.” ALTON’s Chairman, Gbenga Adebayo, highlighted the challenges of maintaining quality service amidst stagnant tariffs.
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“For 11 years, tariffs have remained unchanged despite inflation and other economic pressures. Operators cannot continue to absorb these rising costs without adjusting service fees,” Adebayo warned.
Telecom operators have also hinted at possible service disruptions if their request is not approved. They warned that failure to adjust tariffs could force some companies to reduce their service coverage, particularly in rural and underserved areas.
The first call for a tariff review was made in April 2024, but progress has been slow. ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) have urged the Federal Government to engage stakeholders in meaningful dialogue.
“This is about sustainability, not just profitability,” Toriola added. “A healthy telecom industry is critical for Nigeria’s broader economic and social development.”
As the NCC considers the proposal, the debate over affordability and operational sustainability continues, with all eyes on how the regulator balances the needs of consumers and the survival of the sector.
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