Nigerian telecoms providers have proposed a 100% rise in tariff, pending government permission.
The proposal, which has been submitted to the Nigerian Communications Commission, seeks to address rising operational costs, such as inflation and higher service delivery costs.
Karl Toriola, Chief Executive Officer of MTN Nigeria, made the remark during an interview with Arise TV on Thursday.
However, the CEO stated that it is questionable whether the Nigerian Communications Commission, the telecom regulator, will approve the request.
Toriola believes that the planned tariff increase is important for the industry’s long-term viability, as rising operational costs have put severe financial strain on it.
“We’ve put forward requests of approximately 100 percent 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 difficulties, Toriola expressed confidence that authorities will make the correct decision, taking into account the realities of the industry.
The CEO underlined that the industry’s long-term viability is more important than short-term profits.
“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.”
The idea comes as telecom businesses face increased expenses due to inflation, exchange rate changes, and rising prices for major operational inputs such as diesel, power generation, and raw materials.
Toriola emphasised the burden that rising expenses have put on telecom enterprises, making it difficult for many companies to remain profitable.
Earlier this week, operators released a statement warning of impending service interruptions unless tariffs are modified to account for rising operational costs.
Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria, described the telecom industry as “under siege,” citing mounting operational costs caused by inflation, variable exchange rates, and rising energy prices.
He stated that, despite these issues, tariffs have remained fixed, leaving operators scrambling to provide excellent service while expanding their networks.
The telecom head cautioned that if tariffs are not adjusted immediately, operators may resort to service shedding, resulting in limited availability of communication services in specific locations.
The first call for tariff adjustments was issued in April 2024, but no major progress has been made. In response to the mounting financial pressures, ALTON and the Association of Telecommunications Companies of Nigeria issued a joint statement requesting the Federal Government to promote a productive engagement with industry stakeholders.
Following 11 years of tariff stability, the associations highlighted the importance of establishing a framework that balances customer affordability with operator financial viability.
With a common commitment to the sector’s future, operators are urging all stakeholders to act before it is too late, warning that failure to do so will jeopardise the sustainability of one of Nigeria’s most important businesses.
