MTN Nigeria is intensifying its lobbying efforts to double service tariffs in the wake of severe economic challenges and inflation, which has reached a nearly three-decade high of 34.6% (as of November, 2024).
Karl Toriola, CEO of MTN Nigeria, emphasized, “We’ve put forward requests of approximately a 100% increase to the regulator. There’s no way that the industry could continue to sustain itself and provide the required quality of service under the present structure.”
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Unsustainable Tariffs
Telecom operators have continued under unchanged pricing regulations for 11 years, a period during which operational costs have surged due to fluctuating exchange rates, a steep naira depreciation, and rising costs attributed to diesel and power generation.
The sector has been vocal about the unsustainable nature of current tariffs. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) warned that potential service disruptions could occur should tariff adjustments not be implemented.
Contrastingly, National President of the National Association of Telecommunications Subscribers (NATCOMS), Chief Deolu Ogunbanjo, noted that the planned tariff hike will result in voice calls rising from NGN 11.00 to NGN 15.40 per minute, short message services jumping from NGN 4.00 to NGN 5.60 and 1 GB data bundles increasing from NGN 1,000 to NGN 1,400 as a result of just a 40% increase in telecom tariffs.
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Stacked, Broader Impact
Eng. Gbenga Adebayo, Chairman of ALTON, described the sector as “under siege,” noting that operators are struggling to maintain service quality and expand infrastructure amid escalating operational expenses. Without relief, he cautioned that some services might have to be scaled back, reducing telecom access in certain areas.
The tariff increase request, initially submitted in April, 2024, has seen little progress, prompting renewed appeals from ALTON and the Association of Telecommunications Companies of Nigeria (ATCON). The associations urged the Federal Government to engage with stakeholders to identify solutions that address consumer affordability whilst also ensuring the financial stability of telecom operators.
Highlighting the consequences of imbalanced, unaffordable, telecom services for Nigeria’s populace, Adebayo said, “Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted.”
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