Explore capital market funding, not 100% tariff hike, subscribers urge telcos

• Telecommunications subscribers have urged operators to explore other sources of funding like the capital market instead of the proposed 100 per cent tariff hike
• They say the capital market option is sustainable
• The subscribers say tariff hike will further burden Nigerians

Telecommunications operators have been urged to explore capital market funding as a sustainable option to address rising operational costs rather than implementing a proposed 100 per cent tariff hike.

President of the National Association of Telecommunications Subscribers (NATCOMS), Adeolu Ogunbanjo, said the proposed tariff hike would impose financial strain on consumers.

Ogunbajo stressed that opting for capital market options like Initial Public Offers (IPOs) will prove to be more sustainable and prevent burdening subscribers, especially low-income users.

He cited the success of MTN on the stock market as the telco issued a series of Commercial Papers, which recorded oversubscription, urging other telcos to follow suit.

“They can go to the capital market to raise funds. Nigerians will buy their shares, and I am confident it will be oversubscribed. MTN has already done this successfully; other operators like Glo and Airtel should follow suit,” he said

Tariff hike will add to Nigerians’ burden – NATCOMS

The association earlier said the proposed tariff hike by telcos is “insensitive” and “not in the interest of telecom services consumers.”

It noted that with the rising costs of goods and services, consumers are contending with financial strain and that a hike in the cost of services such as voice calls, SMS, and data bundles will further exacerbate the situation.

Telcos face rising operational costs, push for tariff hike

With the challenges confronting the telecommunications sector, ranging from currency devaluation, high energy costs, and inflationary pressures, telco operators pushed for tariff hikes to mitigate the impact of the challenges.

There were reports in December 2024 of a possible hike in January 2025, but the Nigeria Communications Commission denied such plans, saying they were untrue. Despite this, Nigerians have expressed worry over an imminent tariff hike.

Telcos continue to maintain their stance as they warned of imminent shutdown if tariffs are not hiked, noting that many now operate on their reserves, which is not sustainable over time.

Nigerian telecom companies push for 100% tariff hike amid rising operational costs

Meanwhile, TheRadar reported that Nigerian telecommunications companies submitted a proposal to raise their tariffs by 100 per cent, pending approval from the government, in response to escalating operational costs. 

The proposal, disclosed by MTN Nigeria CEO Karl Toriola in an interview with Arise TV on Thursday, January 2, aimed to address the financial pressures caused by inflation, fluctuating exchange rates, and increasing costs of essential inputs like diesel and power generation.