THE Nigerian telecommunications companies (TELCOS) have proposed a 100 per cent increase in their tariffs, which they said is subject to approval from the Nigerian Communications Commission(NCC).
The proposal, which has been submitted to the NCC, aims to address rising operational costs, including inflation and increased service delivery expenses.
The disclosure was made by the chief executive officer, MTN Nigeria, Karl Toriola, in a monitored interview on Friday, January 3, on Channels Business Incorporated programme.
The CEO, however, expressed reservations over possible approval of the proposal by the telecom regulator-NCC.
According to Toriola, 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.
Despite the challenges, Toriola expressed optimism that regulators would make the right decision, taking into account the realities of the sector.
He stressed that the focus is on ensuring the long-term sustainability of the industry, rather than short-term profitability.
“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.”
He noted that the proposal comes amid rising costs for telecom companies, driven by factors such as inflation, exchange rate fluctuations, and the increasing price of key operational inputs like diesel, power generation, and raw materials.
Toriola highlighted the pressure these rising costs have put on telecom businesses, making it difficult for many companies to maintain profitable operations.
The ICIR, earlier in the week, reported a statement from Telcos warning that service disruptions are imminent unless tariffs are adjusted to account for escalating operational costs.
Expressing further concerns, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), 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.
He also recalled that the first call for a tariff adjustment was made in April 2024, but no significant progress has been achieved.
The ICIR reports that the federal Minister of Communications and Digital Economy, Bosun Tijani has informed of plans to improve Nigeria’s telecommunications infrastructure which comes with a cost, adding that a possible tariff review is among the proposals being considered by telecom stakeholders to grow the sector further.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.