In a bid to address mounting financial pressure, Nigerian telecommunications companies have proposed a 100% increase in tariffs, pending regulatory approval. The proposal, submitted to the Nigerian Communications Commission (NCC), underscores the escalating operational costs driven by inflation, volatile exchange rates, and surging energy prices.
The announcement was made by Karl Toriola, Chief Executive Officer of MTN Nigeria, during an interview with Arise TV on Thursday. According to Toriola, the tariff adjustment is crucial for the sustainability of the industry, which has been grappling with unprecedented cost pressures.
“We’ve put forward requests of approximately 100% tariff increases to regulators. I doubt they’re going to approve that quantum of increase because they are very, very sensitive to the current economic situation in the country,” Toriola said. Despite his reservations, he expressed optimism that the NCC would strike a balance between consumer affordability and industry sustainability.
Rising costs have placed telecom operators in a precarious position, with companies struggling to maintain quality services. Inflation, exchange rate fluctuations, and the soaring cost of critical inputs—such as diesel and power generation—have significantly increased the cost of doing business. Operators warn that without immediate intervention, service disruptions and network downgrades may become inevitable.
Toriola emphasised the collective efforts of stakeholders, including policymakers, regulators, and industry leaders, to address the crisis. “We’re all on the same side,” he said. “Without a sustainable telecom industry, the broader economy and the well-being of Nigerians will suffer.”
Echoing this sentiment, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, described the industry as “under siege.” He highlighted the impact of 11 years of tariff stability in a market where inflation and other economic pressures have eroded profitability.
Despite these challenges, telecom companies have kept tariffs unchanged, prioritizing affordability for consumers. However, this strategy is no longer tenable. “Operators may be forced to shed services, leading to reduced availability of telecom services in certain areas,” Adebayo warned.
The push for a tariff increase is not new. In April 2024, operators initially called for a review of tariffs but saw little progress. As the situation worsens, both ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) have renewed calls for urgent dialogue with the Federal Government. In a joint statement, they stressed the need for a framework that balances consumer affordability with the financial health of the sector.
Telecom operators are urging the Federal Government and regulators to act swiftly to prevent a crisis in one of Nigeria’s most critical industries. The proposal highlights the delicate balance between protecting consumers and ensuring the long-term sustainability of telecom services, which are essential to driving economic growth and innovation.
