Nigerian telecommunications companies are seeking regulatory approval for a 100% tariff hike to combat rising operational costs. The proposal, submitted to the Nigerian Communications Commission (NCC), underscores the financial strain caused by inflation, energy costs, and fluctuating exchange rates.
Speaking in an interview, MTN Nigeria’s CEO, Karl Toriola, explained that the industry faces unsustainable financial pressures, making the adjustment necessary for long-term viability. While acknowledging that the NCC may not approve the full increase due to economic sensitivities, he stressed that a solution is vital to prevent further deterioration.
The telecom sector has operated with stable tariffs for over 11 years, despite mounting operational challenges. According to Toriola, rising expenses, particularly in diesel, power generation, and raw materials, have made it increasingly difficult for operators to maintain profitability while expanding services.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has warned of imminent service disruptions if tariffs are not adjusted. ALTON’s chairman, Engr. Gbenga Adebayo, described the sector as “under siege” and emphasised that the situation threatens service quality and network expansion in many areas.
Efforts to address the crisis date back to April 2024, when operators first requested tariff adjustments. However, little progress has been made. ALTON and the Association of Telecommunications Companies of Nigeria have urged the government to initiate constructive dialogue, ensuring a balance between consumer affordability and the financial sustainability of operators.
With the telecom industry playing a critical role in Nigeria’s economy, stakeholders agree that immediate action is essential. Failure to address the situation, they warn, could lead to service limitations and jeopardise one of the nation’s most vital sectors.
