Nigerian Telecom Companies are proposing a 100% increase in their tariff to address operational cost and increased service delivery expenses. The new proposal, announced by the Chief Executive Officer, MTN Nigeria, Karl Toriola, is awaiting approval by the Nigerian Communication Commission, NCC.
The proposed tariff hike comes amid series of complaints by Telecom providers about the rising cost of business operations triggered by inflation, unstable exchange rate, cost of power generation and raw materials. The Telecoms providers are hoping that with the new tariff, they will be operating with a cost that is reflective of the current economic realities in the country.
MTN Nigeria CEO, Karl Toriola, emphasised the pressure under which Telecoms companies have been working due to the present economic reality, a situation which has made profitable operations almost elusive for them.
Also, The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr. Gbenga Adebayo described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.
He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks. He further warned that without a tariff adjustment, Telecoms may adopt a service shedding policy, which will lead to limited availability of telecom services in certain areas.
In response to the issues raised, stakeholders have urged the government to carry out constructive dialogue with the Telecoms operators and find a mutually beneficial agreement that will not compound the woes of the people.
