The Nigerian telecommunications companies (TELCOS) said high operational costs have put severe pressure on telecom businesses, making it difficult for many companies to maintain profitable operations.
The telecomm providers said they have proposed a 100 per cent increase in their tariffs, which they said is subject to approval from the Nigerian Communications Commission (NCC).
The proposal, which has been submitted to the NCC, aims to address rising operational costs, including inflation and increased service delivery expenses.
Chief executive officer, MTN Nigeria, Karl Toriola, made the disclosure in a recently monitored interview on Channels Business Incorporated programme.
The CEO, however, expressed reservations over possible approval of the proposal by the telecom regulator-NCC.
According to Toriola, the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational costs.
“We’ve put forward requests of approximately 100 per cent 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 challenges, Toriola expressed optimism that regulators would make the right decision, taking into account the realities of the sector.
He stressed that the focus is on ensuring the long-term sustainability of the industry, rather than short-term profitability.
“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.”
He noted that the proposal comes amid rising costs for telecom companies, driven by factors such as inflation, exchange rate fluctuations, and the increasing price of key operational inputs like diesel, power generation, and raw materials.
Recently there was a statement from Telcos warning that service disruptions are imminent unless tariffs are adjusted to account for escalating operational costs.
Expressing further concerns, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, described the telecom sector as “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.
