Telecommunications companies in Nigeria, led by MTN Nigeria, have proposed a 100% tariff increase to address escalating operational costs, but the decision now rests with the Nigerian Communications Commission (NCC).
Speaking on Arise TV, MTN Nigeria’s Chief Executive Officer, Karl Toriola, revealed that the proposal aims to ensure the industry’s sustainability amidst significant financial challenges. However, he acknowledged that regulators may not approve the full adjustment due to the country’s current economic conditions.
“We have requested approximately 100% tariff increases, but I doubt the regulators will approve such a steep rise, given their sensitivity to the prevailing economic realities,” Toriola said.
Despite this uncertainty, Toriola expressed confidence in the regulators’ ability to make informed decisions that consider both industry viability and consumer affordability.
Rising Costs Strain Telecom Sector
Toriola underscored the growing financial pressures telecom operators face, citing inflation, fluctuating exchange rates, and soaring energy costs as major challenges. These factors have made it increasingly difficult for companies to sustain operations without a tariff review.
Earlier this week, telecom operators warned of potential service disruptions if tariffs are not adjusted promptly. Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the sector as “under siege,” emphasizing that operational costs have surged while tariffs have remained unchanged.
Adebayo cautioned that failure to address these challenges could force operators to reduce services in some areas, compromising network quality and availability.
Call for Dialogue and Sustainable Solutions
Telecom operators, through ALTON and the Association of Telecommunications Companies of Nigeria, have called for urgent discussions with the Federal Government. They seek a balanced framework that ensures service affordability while supporting operators’ financial stability.
The associations highlighted that tariffs have remained stable for over a decade, despite the rising cost of operations. They warn that without immediate action, the survival of one of Nigeria’s critical industries could be at risk.
“This is not about short-term gains but ensuring the long-term sustainability of an industry that drives economic growth and impacts the well-being of millions,” Toriola concluded.
