Nigerian telecommunications operators have proposed a 100% increase in service tariffs to address surging operational costs. The proposal, submitted to the Nigerian Communications Commission (NCC), seeks to mitigate inflation, exchange rate volatility, and rising energy expenses. Karl Toriola, CEO of MTN Nigeria, disclosed the plan during an interview on Arise TV, acknowledging uncertainty about whether the NCC would approve the substantial hike.
Toriola emphasized that the increase is essential for the sector's sustainability, citing the mounting financial pressures facing telecom businesses. “We’ve put forward requests of approximately 100% tariff increases. While approval seems uncertain, we remain optimistic about the regulators' understanding of the sector's realities,” he stated. The CEO underscored the industry's focus on long-term stability over short-term profitability.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, described the industry as “under siege,” highlighting challenges from stagnant tariffs despite rising costs. Operators have warned that without an immediate adjustment, service disruptions and limited network availability in certain areas may become inevitable.
Telecom associations, including ALTON and the Association of Telecommunications Companies of Nigeria, have urged the Federal Government to engage stakeholders in constructive dialogue. They advocate for a balanced approach that considers consumer affordability and financial sustainability, warning that the sector's survival is at stake after 11 years of unchanged tariffs.
