Chinedu Ezeh 
Telecommunication operators in Nigeria, such as MTN Nigeria and Globacom, are seeking approval from the Federal Government, facilitated by the Nigerian Communications Commission (NCC), to increase their tariffs. This request follows financial challenges faced by these operators due to foreign exchange losses and rising energy costs, leading some to report losses in the previous year.
The telcos’ proposal for tariff adjustments comes shortly after other companies, including MultiChoice, raised their prices. The Association of Licensed Telecom Companies of Nigeria and the Association of Telecom Companies of Nigeria issued a joint statement urging the government to expedite the approval process.
They argue that despite economic challenges, the telecommunications industry has not adjusted its pricing framework in over a decade due to regulatory constraints. They emphasize the need for a pricing framework that reflects economic realities while ensuring both consumer affordability and operators’ financial viability.
The NCC regulates telecom prices, and any changes must receive its approval. The commission is currently conducting a cost-based study to evaluate potential tariff increments.
Telecom operators stress that the current tariff regime is unsustainable, citing significant increases in operational costs driven by factors like foreign exchange shortages and energy expenses. These challenges have led to a decline in sector investments.
MTN Nigeria and Airtel Africa have reported substantial financial losses attributed to factors like forex market liberalization, which devalued the naira.
Industry representatives warn that without tariff adjustments, many operators may struggle to survive, potentially impacting service quality and infrastructure investment. They call for regulatory support to address these challenges.
Subscribers and economists generally support the need for tariff adjustments, considering the increased cost of operations for telecom operators. They emphasize the importance of government intervention to create a conducive business environment and ensure the sustainability of the sector.
