- Telecom companies in Nigeria pushed for a 100% increase in tariffs, citing mounting operational costs and financial pressures
- The proposal was submitted to the Nigerian Communications Commission (NCC) for approval, with no decision yet
- Association of Licensed Telecommunications Operators of Nigeria (ALTON) Chairman Gbenga Adebayo warned of service disruptions and reduced availability without tariff adjustments
Nigerian telecommunications companies have submitted a proposal to raise their tariffs by 100%, 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.
MTN Nigeria CEO emphasises economic impact
Toriola said, “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.”
Speaking further on behalf of the telecommunications industry, the MTN CEO explained that the proposal had been submitted to the Nigerian Communications Commission (NCC) but noted that it was uncertain whether the regulatory body would approve the increase.
He emphasised that the primary goal was the long-term sustainability of the sector, rather than short-term profits.
The proposed tariff hike followed growing concerns among operators about the financial strain on the industry. Industry earlier operators warned that without a tariff adjustment, service disruptions were likely.
Telecom operators warn of service limitations without tariff review
Engineer Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the telecom sector as “under siege,” citing the impact of inflation, volatile exchange rates, and soaring energy prices.
He pointed out that despite these challenges, tariffs had remained unchanged, leaving operators unable to expand their networks or maintain service quality.
Adebayo also warned that without an immediate tariff adjustment, telecom operators might be forced to reduce services in some areas, further limiting access to telecom networks.
The call for a tariff review was first made in April 2024. In light of the growing financial pressures, ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) issued a joint statement urging the Federal Government to engage in constructive dialogue with industry stakeholders.
Both associations emphasised the need for a balanced approach that ensures both consumer affordability and the financial sustainability of telecom operators after 11 years of tariff stability.
Industry leaders urged all parties to act before the situation worsens, warning that failure to address the issue could threaten the survival of one of Nigeria’s most critical industries.
NCC approves disconnection of Exchange telecoms from MTN Nigeria over unpaid charges
Meanwhile, TheRadar earlier reported that the Nigerian Communications Commission (NCC) sanctioned the disconnection of Exchange Telecoms from MTN Nigeria due to unpaid interconnect charges.
According to the report, Exchange Telecoms failed to provide satisfactory explanations for its inability to pay the charges.