Nigerian telecommunications companies have proposed a 100 per cent tariff hike, pending approval from the government.
The proposal, submitted to the Nigerian Communications Commission (NCC), addresses rising operational costs, including inflation and increased service delivery expenses.
The disclosure was made by the Chief Executive Officer, MTN Nigeria, Karl Toriola, during an interview on Arise TV on Thursday.
However, the CEO expressed that whether the Nigerian Communications Commission—the telecom regulator—will approve the proposal remains uncertain.
According to Toriola, the proposed tariff hike is necessary for the industry’s sustainability. The industry is facing significant financial pressures due to rising operational costs.
“We’ve sent requests for approximately 100 percent 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 challenges, Toriola expressed optimism that regulators would make the right decision, considering the sector’s realities.
The CEO emphasised that the focus is on ensuring the industry’s long-term sustainability rather than short-term profitability.
“I believe we’re all on the same side—the policymakers, the regulators, our Chairman of ALTON, Gbenga Adebayo, and the industry. We’re united because we share concerns about a few fundamental issues. First, human rights are critical to driving any economy. Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted.”
The proposal comes amid rising costs for telecom companies, driven by inflation, exchange rate fluctuations, and the increasing price of key operational inputs like diesel, power generation, and raw materials.
Toriola highlighted the pressure these rising costs have put on telecom businesses, making it difficult for many companies to maintain profitable operations.
Earlier this week, operators issued a statement warning that service disruptions are imminent unless tariffs are adjusted to account for escalating operational costs.
Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.
He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.
The telecom chief warned that operators might resort to service shedding without an immediate tariff adjustment, limiting the availability of telecom services in certain areas.
The first call for a tariff adjustment was made in April 2024, but no significant progress has been achieved.
In response to the growing financial strain, ALTON and the Association of Telecommunications Companies of Nigeria issued a joint statement urging the Federal Government to facilitate a constructive dialogue with industry stakeholders.
