Nigeria’s telecommunication companies, including MTN, Airtel, and Glo, are intensifying efforts to secure regulatory approval to double tariffs, citing economic pressures and inflation at a nearly three-decade high.
Karl Toriola, CEO of MTN Nigeria, revealed during an interview with Arise TV that the industry has submitted a proposal for a 100% price hike. “There’s no way that the industry could continue to sustain itself and provide the required quality of service under the present structure,” Mr Toriola said.
While many sectors adjusted prices in response to surging inflation over years, telecom operators have been constrained by regulatory policies. Price hikes have been blocked by the Nigerian Communications Commission (NCC), even as inflation reached 34.6% in November 2024 and the naira sharply depreciated.
The pressure on telecoms has been immense, with operators like MTN Nigeria reporting staggering losses—₦137 billion in 2023, growing to ₦514.9 billion in the first nine months of 2024. Airtel Africa also recorded $89 million in losses for FY 2024, largely due to challenges in Nigeria.
However, relief appears imminent. According to TechCabal, the NCC plans to approve long-pending tariff hikes, with new rates for calls, SMS, and internet bundles expected to take effect in January 2025.
Proposed adjustments could see call rates rise from ₦11 to ₦22 per minute, SMS from ₦4 to ₦8, and 1GB data bundles from ₦1,000 to ₦2,000.
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Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, acknowledged the need for adjustments during a December interview with Arise TV, adding, “We think there may be a need for that.”
Despite the financial relief this approval may offer telcos, it raises concerns about affordability. Food inflation at 39.93% already places immense strain on households, and increased telecom costs could reduce internet usage in a country striving for digital inclusion.
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