Telcos Seek 100% Tariff Hike, Awaits Fresh Approval

Nigerian telecom firms propose 100% tariff hike due to rising operational costs.
MTN CEO warns industry sustainability depends on immediate tariff adjustments.
Operators fear service disruptions without urgent approval of revised tariffs.

Nigerian telecommunications companies have proposed a 100% increase in tariffs to address escalating operational costs driven by inflation, exchange rate volatility, and rising energy prices.

This proposal, currently under review by the Nigerian Communications Commission (NCC), was revealed by Karl Toriola, Chief Executive Officer of MTN Nigeria, during an interview with Arise TV.

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EKO HOT BLOG reports that Toriola explained that the steep tariff adjustment is vital for the sector’s long-term sustainability, despite uncertainties over the regulator’s approval.

“The regulators are sensitive to the current economic realities, but the financial pressures on the industry are immense,” Toriola noted, emphasizing the industry’s need to balance profitability with the broader economic and social impact of its services.

Operators have faced mounting challenges, including rising diesel costs, power generation expenses, and raw material prices, which have strained their ability to maintain quality services and expand network coverage.

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, described the sector as “under siege,” warning that without tariff adjustments, service disruptions or reductions in availability may occur.

Telecom operators have repeatedly called for a tariff review, with the first request made in April 2024. However, no significant progress has been made, leaving the industry grappling with unsustainable financial conditions.

Earlier this week, telecom associations issued a joint statement urging the Federal Government to prioritize discussions with industry stakeholders to establish a framework that balances consumer affordability with financial stability.

While the proposal has sparked concerns among consumers, operators stress that maintaining current tariffs after 11 years of stability is no longer viable. “A sustainable telecom industry is essential for Nigeria’s economic health and the well-being of its citizens,” Toriola stated, urging swift action to prevent the collapse of a critical sector.

Telcos 100% Tariff Hike

Telecom operators remain hopeful that collaborative efforts with the government and regulators will result in a resolution that ensures the survival of the industry and the uninterrupted delivery of services to Nigerians.