Telecommunications operators in Nigeria, including MTN Nigeria and Globacom, have requested approval from the Federal Government, through the Nigerian Communications Commission (NCC), to raise their tariffs. This move follows losses incurred by some operators due to foreign exchange fluctuations and increasing energy costs, prompting them to seek regulatory permission to adjust prices. The request came shortly after MultiChoice, a South African pay television company, raised its tariffs, reflecting a broader trend of price adjustments across various sectors, including Discos and brewing companies.

In a joint statement issued by the Association of Licensed Telecom Companies of Nigeria and the Association of Telecom Companies of Nigeria, the telcos highlighted the need for a tariff review, citing regulatory constraints that have prevented price adjustments for over a decade. They emphasized the importance of aligning pricing with economic realities to ensure industry sustainability and investor confidence. The associations called on the government to engage in constructive dialogue with industry stakeholders to address pricing challenges and establish a balanced framework that considers both consumer affordability and operator viability.

Despite rising inflation and economic challenges, the telecommunications industry has not revised its prices in over 11 years, largely due to regulatory restrictions. Efforts to reach the NCC for comment on the tariff adjustment request were unsuccessful as of press time, indicating the sensitivity of the matter. The NCC regulates telecom prices and requires approval for any tariff changes, with ongoing cost-based studies to determine the feasibility of price increments.

Telecom operators, represented by the President of Telecommunications Companies of Nigeria, Tony Izuagbe, expressed concerns about running at a loss and warned of potential operational shutdowns if tariffs remain unchanged. He highlighted the financial strain caused by increased operational costs, particularly diesel prices, which have soared in recent years. With operators spending billions on diesel to power base stations, the current tariff regime is deemed inadequate to cover expenses, jeopardizing the industry's sustainability.

Subscribers and economists have backed the telcos' move to increase tariffs, citing the need for operators to offset rising operational costs and maintain service quality. Adeolu Ogunbanjo, President of the National Association of Telecommunications Subscribers, called for a marginal tariff increase to support operators in overcoming challenges such as equipment purchases in foreign currencies and fuel price hikes. Economists emphasized the necessity of government intervention to reduce operating costs and ensure industry viability amid economic pressures. They warned of potential market exits and negative economic implications if the situation remains unaddressed.

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