By 
Nigerian telecommunications companies have proposed a 100 percent increase in tariffs, pending government approval.
The proposal, submitted to the Nigerian Communications Commission (NCC), seeks to address escalating operational costs driven by inflation and increased service delivery expenses. This was disclosed by MTN Nigeria’s Chief Executive Officer, Karl Toriola, during an interview on Arise TV.
However, Toriola acknowledged uncertainty regarding the NCC’s approval of the proposed hike.
“We’ve requested 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,” he stated.
The CEO emphasized that the tariff adjustment is crucial for ensuring the telecom industry’s sustainability amidst rising financial pressures.
“I believe we’re all on the same side—policymakers, regulators, our Chairman of ALTON, Gbenga Adebayo, and the industry. We’re united in our concerns about fundamental issues. Without a sustainable telecom sector, the broader economy and the well-being of citizens will be negatively impacted,” Toriola added.
The proposed tariff hike comes in response to challenges such as inflation, exchange rate fluctuations, and increased costs of key operational inputs, including diesel and power generation.
Earlier this week, telecom operators warned of imminent service disruptions unless tariffs are adjusted to account for rising expenses. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, described the telecom sector as “under siege” due to soaring operational costs and stagnant tariffs.
Adebayo highlighted that operators are struggling to maintain quality service and expand their networks, warning that without an immediate tariff adjustment, some areas may face limited telecom service availability.
This marks the second call for tariff adjustments this year, with the initial request made in April 2024. Despite ongoing challenges, significant progress has not yet been achieved.
In a joint statement, ALTON and the Association of Telecommunications Companies of Nigeria urged the Federal Government to engage in constructive dialogue with industry stakeholders. They stressed the importance of a framework that balances consumer affordability with operator financial sustainability.
With 11 years of tariff stability, telecom operators are calling on stakeholders to act promptly to preserve the sector’s future. Failure to address these issues, they warn, risks undermining one of Nigeria’s most critical industries.
Comments