Nigerian telecom operators, including MTN, propose a 100% tariff hike, citing rising operational costs like inflation and exchange rate fluctuations. The proposal, submitted to the Nigerian Communications Commission (NCC), faces uncertain approval. The hike aims to sustain the sector amid increasing challenges in the telecom industry.
Nigerian telecom operators, including MTN Nigeria, have proposed a 100% tariff increase due to rising operational costs, including inflation and increased service delivery expenses. The proposal was submitted to the Nigerian Communications Commission (NCC) for approval.
MTN Nigeria's CEO, Karl Toriola, revealed the proposal during an interview with Arise TV, explaining the necessity of the increase to maintain the industry's sustainability. However, he noted that the approval of such a significant hike is uncertain, given the economic challenges faced by the country.
Toriola highlighted that the telecom sector has suffered financial strain due to rising power generation, diesel, and raw materials. Despite these challenges, he emphasized the need for the industry to remain sustainable long-term, instead of focusing on short-term profitability.
Additionally, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, described the sector as “under siege,” with escalating costs from inflation, exchange rate fluctuations, and energy prices. He warned that if tariffs remain unchanged, operators might have to reduce services, impacting coverage in some areas.
This tariff adjustment proposal follows earlier requests made in April 2024, but no significant progress has been made. Operators have urged the government to engage in meaningful dialogue with industry stakeholders to address these issues.
