Telecommunications operators in Nigeria, including MTN Nigeria and Globacom, have requested approval from the Federal Government, through the Nigerian Communications Commission (NCC), to raise their tariffs. The operators cite foreign exchange losses and increasing energy costs as reasons for the proposed tariff hike, which comes after several companies in various sectors, including MultiChoice and Discos, have also raised prices recently.
The Association of Licensed Telecom Companies of Nigeria and the Association of Telecom Companies of Nigeria issued a joint statement calling for the government to expedite the approval process. They highlighted that the telecommunications industry has not reviewed its pricing framework upward in the last 11 years, primarily due to regulatory constraints. They argue that the current price control mechanism, which is not aligned with economic realities, threatens the industry's sustainability and could erode investors' confidence.
The Minister of Interior, Dr. Olubunmi Tunji-Ojo, also announced plans to relocate several correctional centres to improve space, security, and infrastructure. This follows the escape of 119 inmates from the Suleja Medium Security Custodial Centre due to a rainstorm that damaged the facility.
The telecom industry has faced significant increases in operational costs, including diesel prices, which have soared in recent years. Telcos spent about N429.43bn on diesel for base stations in 2023, an increase of 34.57 per cent from the previous year. The industry has also seen a decline in investment, with the sector's investment dropping to $134m in 2023 from $456.8m in the previous year.
Telcos are running at a loss, and some may not survive the year if tariffs remain the same, according to the President of Telecommunications Companies of Nigeria, Tony Izuagbe. He warned that many operators may be forced to shut down operations, leaving millions of Nigerians without access to vital communication services.
Subscribers and economists have backed the move by telecom operators to increase tariffs to stay afloat. They argue that a slight increase in tariff prices would not be detrimental to subscribers but would help operators continue providing services and investing in infrastructure. However, the final decision on the tariff increase rests with the NCC, which regulates prices in the telecom industry.
