Telecom Firms Propose 100% Tariff Hike, Await NCC Approval

Nigerian telecommunications companies have submitted a proposal for a 100% increase in tariffs to the Nigerian Communications Commission (NCC), citing rising operational costs and economic pressures. The initiative aims to address challenges such as inflation, exchange rate fluctuations, and the escalating costs of diesel, power, and raw materials.

MTN Nigeria CEO Karl Toriola disclosed the proposal during an interview on Arise TV, emphasizing the necessity of the hike for the industry’s sustainability. However, he acknowledged uncertainty regarding the NCC’s approval, given the economic realities facing consumers. Toriola stressed that regulators are mindful of the impact such an increase could have on the public, but he remained hopeful that a balanced resolution would be reached.

Toriola underscored the industry’s long-term sustainability as a priority, stating, “We’re united with policymakers and regulators in recognizing the importance of a sustainable telecom sector. Without it, the broader economy and citizens’ well-being will suffer.”

Telecom operators have warned of potential service disruptions unless tariffs are adjusted to reflect the rising costs. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the sector as “under siege,” citing inflation, volatile exchange rates, and soaring energy costs. Despite these pressures, tariffs have remained unchanged for over a decade, leaving operators struggling to maintain quality service and network expansion.

Earlier efforts to adjust tariffs, including a request in April 2024, have yet to yield significant results. Industry associations, including ALTON and the Association of Telecommunications Companies of Nigeria, have called on the Federal Government to facilitate dialogue aimed at balancing consumer affordability with the financial viability of operators.

With the telecom sector playing a critical role in Nigeria’s economy, stakeholders are urging swift action to ensure its survival. Failure to address the growing financial strain, they warn, could lead to service limitations and jeopardize one of the country’s most vital industries.