Breaking News: Telecom Providers Demand A Staggering 100% Price Jump – What It Means For You

Breaking News: Telecom Providers Demand A Staggering 100% Price Jump – What It Means For You

Nigerian telecom companies have proposed an eye-popping 100% hike in their tariffs, seeking approval from the government to combat skyrocketing operational…Breaking News: Telecom Providers Demand A Staggering 100% Price Jump – What It Means For You

costs.

The move comes as telecom giants like MTN Nigeria face mounting financial pressures due to inflation, fluctuating exchange rates, and surging service delivery costs. This proposal was revealed by MTN’s CEO, Karl Toriola, during an exclusive interview with Arise TV on Thursday.

Toriola noted that while the tariff increase was a necessary measure for industry sustainability, its approval by the Nigerian Communications Commission (NCC) remains uncertain. “We’ve put forward a request for nearly 100% tariff hikes to the regulators, but I’m not sure they’ll approve such a drastic increase, especially with the economic challenges the country is facing,” he said.

Despite these challenges, the MTN chief expressed hope that regulators would make decisions based on the sector’s long-term viability, rather than short-term gains. “Our focus is on ensuring a sustainable industry because a thriving telecom sector is key to the overall well-being of the economy and the people,” he emphasized.

The telecom sector is grappling with a perfect storm of rising costs, including the increasing price of diesel, power, and raw materials, which have all led to higher operating expenses.

Earlier this week, the sector’s operators issued a warning about potential service disruptions unless the government approves tariff adjustments. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, described the telecom industry as “under siege,” pointing to the escalating costs that have left operators struggling to deliver quality services.

Adebayo stressed that without an immediate tariff adjustment, the sector may face service shedding, impacting telecom availability in various regions. He also revealed that the first call for a tariff increase was made as far back as April 2024, but significant progress has yet to be made.

ALTON and the Association of Telecommunications Companies of Nigeria (ATCON) have jointly urged the Federal Government to engage in meaningful dialogue with industry stakeholders to create a balanced framework that supports both consumer affordability and operator sustainability.

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