Nigerians may soon face higher telecom bills as service providers propose a 100% tariff increase to sustain operations.
The proposal, submitted to the Nigerian Communications Commission (NCC), aims to offset rising costs fueled by inflation, volatile exchange rates, and surging energy prices. The sector’s leaders warn of potential service disruptions if no action is taken.
“We’ve requested approximately 100% tariff hikes from regulators,” said Karl Toriola, CEO of MTN Nigeria, in an interview on Arise TV. “While I doubt the NCC will approve such an increase in full, it’s clear the industry faces significant financial pressure.”
Rising Costs Threaten Service Quality
Operational costs have surged due to inflation and the increased prices of diesel, power generation, and raw materials. Despite this, telecom tariffs have remained unchanged for 11 years.
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Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the industry as “under siege.” He added, “Without immediate adjustments, service shedding may occur, leaving some areas with limited access to telecom services.”
Earlier this week, telecom operators cautioned that rising expenses could lead to network disruptions. They have appealed for a balanced solution that considers consumer affordability while ensuring their financial survival.
Calls for Collaborative Solutions
Telecom leaders and associations are urging the Federal Government to initiate constructive dialogue. “We must find a framework that balances affordability with sustainability. Without this, the survival of one of Nigeria’s critical industries is at risk,” Adebayo warned.
The first call for a tariff adjustment came in April 2024, but no progress has been made. In a joint statement, ALTON and the Association of Telecommunications Companies of Nigeria highlighted the need for swift action.
While uncertainty surrounds the NCC’s response, Toriola remains optimistic. “We share a common goal with regulators and policymakers: ensuring a sustainable industry that drives economic growth and serves the people.”
For now, millions of Nigerians await a decision that could reshape their access to affordable and reliable telecom services.
