Sunday, February 16, 2025

Nigeria’s Telecom Sector May Raise Prices After 11-Year Freeze

Nigerians could see an increase in telecom service tariffs by early 2025 as operators push to sustain the struggling $76 billion industry. Telecom companies have been hit hard by naira devaluation, high inflation, and soaring operational costs, leading to massive financial losses across the sector.

Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, acknowledged the challenges during a recent television appearance. “We have conducted a study on the sustainability of the telecom sector. The findings, due in two weeks, will guide us on the next steps,” Tijani said. He hinted at a possible tariff hike but stressed the need for broader government support, including investments in digital infrastructure.

Telecom operators have intensified calls for tariff adjustments. Obafemi Banigbe, CEO of 9mobile, highlighted that the cost of maintaining infrastructure has surged by over 300%. “From diesel to customs charges, everything has skyrocketed. We need a tariff increase to survive,” Banigbe said.

READ MORE: “No Regrets,” Tinubu Says on Fuel Subsidy Removal as He Targets Inflation Drop

MTN Nigeria’s CEO, Karl Toriola, painted a bleak picture, describing the sector as “a patient in intensive care.” MTN reported a staggering ₦519.1 billion loss in the first half of 2024, while Airtel Africa suffered a $89 million loss after tax in the same fiscal year. Both companies attributed their struggles to naira devaluation and inflation.

“If tariffs don’t go up, the industry will collapse,” Toriola warned. He revealed that MTN has ceased contributing corporate income tax to the Federal Inland Revenue Service due to its financial struggles.

The National Association of Telecommunications Subscribers (NATCOMS) has called for a marginal 10% tariff increase, noting that the last adjustment occurred 11 years ago. “A hike is essential for sustaining operations and improving service quality,” said NATCOMS President Adeolu Ogunbanjo.

With the government and industry stakeholders set to deliberate on the sector’s future, many Nigerians are bracing for potential price increases, hoping improved services will justify the cost.

Hot this week

Governance Suffers as Governors Reside in Abuja, NLC President Laments

The Nigeria Labour Congress (NLC) has criticized state governors...

How Nigeria Spends ₦407 Billion on Fuel Imports in 12 Days

Nigeria's state-owned oil firm, the Nigerian National Petroleum Company...

NUC Tightens Rules for Private University Licensing with 14-Step Approval Process

Nigeria's National Universities Commission (NUC) has introduced a comprehensive...

Kenya’s Odinga, Djibouti’s Youssouf Lead Race for AU Commission Presidency

The race to lead the African Union (AU) Commission...

Nigeria’s Defence Chief Exposes Foreign Links to Boko Haram, Calls for Action

Chief of Defence Staff General CG Musa has indeed...

Dangote Group to Invest $400M in Ethiopia Cement Expansion Amid Market Growth

Africa’s richest man, Aliko Dangote, is doubling down on...

Djibouti’s Youssouf Secures AU Commission Chair, Pledges Security and Unity

Djibouti’s Foreign Minister, Mahmoud Ali Youssouf, has emerged as...

Nigeria Sees 9,100 Childhood Cancer Cases Annually Amid Calls for Urgent Action

Nigeria records approximately 127,000 cancer cases annually, with children...

Nigeria’s Defence Chief Exposes Foreign Links to Boko Haram, Calls for Action

Chief of Defence Staff General CG Musa has indeed...

Ex-Lagos Speaker Obasa Sues Assembly Over Impeachment, Seeks Urgent Court Ruling

Former Speaker of the Lagos State House of Assembly,...

Nigeria to Boost Lagos-Kaduna Freight Rail to Full Capacity by Q2 2025

The Nigerian Railway Corporation (NRC) is ramping up freight...

Kenya’s Odinga, Djibouti’s Youssouf Lead Race for AU Commission Presidency

The race to lead the African Union (AU) Commission...

Related Articles

Popular Categories