3rd January 2025
By Idris Buba
Following rising cost driven by factors like inflation, exchange rate fluctuations, and the increasing price of key operational inputs like diesel, power generation and raw materials which they incur, the Nigerian telecommunications companies have proposed a 100 per cent increase in their tariffs. .
The proposal, which has been submitted to the Nigerian Communications Commission, NCC, pending government’s approval, aims to address rising operational costs and increased service delivery expenses.
MTN Nigeria, Chief Executive Officer, Karl Toriola, had revealed during an interview on Arise TV on Thursday but expressed uncertain whether the Nigerian Communications Commission—the telecom regulator, will approve the proposal.
He said, the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational costs.
“We’ve put forward requests of approximately 100 per cent tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Toriola said.
He however, expressed optimism that regulators would make the right decision, taking into account the realities of the sector with a view to ensuring the long-term sustainability of the industry. .
READ MORE; Telecoms Operators Seek Increase In Tariff To Forestall Service Shedding.
“I believe we’re all on the same side, the policymakers, the regulators, our Chairman of ALTON, Gbenga Adebayo, and the industry. We’re united because we share concerns about a few fundamental issues. First, human rights, are critical to driving any economy. Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted.”
Toriola, who highlighted the pressure these rising costs put on telecom businesses, said the challenges have made it difficult for many companies to maintain profitable operations.
The telcom operators have earlier in the week issued a statement warning that service disruptions are imminent unless tariffs are adjusted to account for escalating operational costs.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr. Gbenga Adebayo described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.
He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.
The telcom chief warned that without an immediate tariff adjustment, operators may resort to service shedding, leading to limited availability of telecom services in certain areas.
The first call for a tariff adjustment was made in April 2024, but did not achieve significant progress.
