Kehinde Fajobi
Telecom companies in Nigeria are proposing a 100% tariff increase, though it is unclear if the Nigerian Communications Commission (NCC) will approve the request.
CEO Karl Toriola made the disclosure in an interview on Arise TV on Thursday, stating that the proposed hike is essential for the industry’s long-term sustainability in the face of 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 uncertainty, Toriola expressed optimism that the regulators would make a decision that balances the sector’s realities with the country’s economic conditions.
“We’re united because we share concerns about a few fundamental issues. First, human rights, which are critical to driving any economy. Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted,” Toriola added.
The tariff proposal comes as telecom companies grapple with rising inflation, exchange rate fluctuations, and increasing operational costs, including diesel, power generation, and raw materials.
Toriola highlighted the pressure these rising costs place on telecom businesses, making it increasingly difficult for companies to maintain profitable operations.
Earlier this week, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) warned that service disruptions are imminent unless tariffs are adjusted to reflect the escalating costs.
ALTON Chairman Engr. Gbenga Adebayo described the sector as “under siege,” noting that tariffs have remained stagnant despite the surging costs of operation.
He warned that without an immediate adjustment, operators could face service shedding, limiting telecom access in certain regions.
The call for tariff adjustments dates back to April 2024, but little progress has been made.
ALTON, along with the Association of Telecommunications Companies of Nigeria, urged the Federal Government to initiate dialogue with industry stakeholders to ensure a balanced framework for both consumer affordability and operators’ financial stability.