Telecommunications companies in Nigeria have proposed a 100% increase in tariffs to address mounting operational costs.

The proposal, submitted to the Nigerian Communications Commission (NCC), is awaiting government approval.

Karl Toriola, the CEO of MTN Nigeria, revealed the plan during an interview on Arise TV, citing inflation and rising service delivery expenses as key drivers.

https://www.arise.tv/karl-toriola-an-unsustainable-telecommunications-industry-can-further-affect-nigerias-economy/

He acknowledged the uncertainty surrounding NCC’s decision, as the regulator remains sensitive to the country’s economic climate.

“We’ve requested approximately 100% tariff increases from regulators,” Toriola said.

“However, I doubt they’ll approve that level of adjustment given the economic realities.”

Despite the uncertainty, Toriola expressed optimism that the NCC would strike a balance between industry sustainability and consumer affordability.

He emphasized the necessity of the hike to ensure the telecom sector remains viable amid escalating financial pressures.

Toriola highlighted that inflation, fluctuating exchange rates, and the increasing cost of essential inputs like diesel and power generation have placed immense strain on operators.

The industry, he said, is grappling with the challenge of maintaining profitable operations while delivering quality services.

Earlier this week, telecom operators issued warnings of potential service disruptions unless tariffs are revised.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) described the sector as “under siege” due to unchecked operational costs.

ALTON Chairman, Engr. Gbenga Adebayo, noted that despite these financial pressures, tariffs have remained unchanged for over a decade.

He warned that without an immediate adjustment, operators might be forced to scale back services, limiting access in certain areas.

The first appeal for a tariff review came in April 2024, but progress has stalled.

In a joint statement, ALTON and the Association of Telecommunications Companies of Nigeria called for urgent dialogue with the Federal Government.

They urged stakeholders to create a framework that balances affordability for consumers with the financial sustainability of operators.

“With 11 years of tariff stability, the current model is no longer viable,” the statement read.

“Failure to act could jeopardize the future of one of Nigeria’s most critical industries.”Toriola echoed these sentiments, emphasizing the industry’s shared commitment to safeguarding its future.

“Human rights, economic growth, and the well-being of Nigerians depend on a sustainable telecom sector. Policymakers, regulators, and industry leaders must act collectively to prevent a crisis.”

The proposal underscores the urgency of addressing the sector’s challenges to ensure continued connectivity and growth.