Nigerian telecom companies have submitted a proposal to the Nigerian Communications Commission (NCC) for a 100% tariff increase. The move, revealed by MTN Nigeria’s CEO, Karl Toriola, aims to address escalating operational costs stemming from inflation, exchange rate fluctuations, and rising energy prices.
During an interview on Arise TV, Toriola highlighted the financial pressures affecting the industry. He cited increased expenses for diesel, power generation, and raw materials, which have significantly impacted telecom operators’ ability to sustain quality services.
“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 explained.
The proposal reflects the telecom operators’ concern for the sector’s long-term sustainability over short-term profitability. Operators warn that without tariff adjustments, service disruptions and coverage limitations may become unavoidable.
Calls for Regulatory Action
The Association of Licensed Telecommunications Operators of Nigeria (ALTON), led by Chairman Gbenga Adebayo, has voiced similar concerns. Adebayo described the telecom sector as “under siege” due to unchecked operational costs.
“Tariffs have remained unchanged despite inflation and rising energy prices, leaving operators struggling to maintain quality service and network expansion,” Adebayo stated.
Operators first called for tariff adjustments in April 2024, but little progress has been made. ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) have issued joint statements urging the Federal Government to prioritize the industry’s survival by facilitating constructive dialogue between stakeholders.
The Need for Balance
Telecom operators emphasize the importance of a framework that balances consumer affordability with financial sustainability. Industry leaders argue that a sustainable telecom sector is essential for economic growth and the well-being of Nigerians.
Toriola reassured stakeholders of a united front, noting, “We’re all on the same side policymakers, regulators, and industry leaders—sharing concerns about ensuring human rights and driving the economy.”
Also, The NCC has yet to decide on the proposed tariff increase. As discussions unfold, operators and regulators must work toward a resolution that secures the sector’s future while protecting consumers from excessive costs.
Telecom operators warn that delays in addressing these challenges could jeopardize one of Nigeria’s most critical industries, threatening connectivity and economic development.
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