The Federal Government has stepped in to address the recent push by telecommunications operators for a significant increase in service tariffs, with the Minister of Communications, Innovations, and Digital Economy, Bosun Tijani, summoning key stakeholders for a crucial meeting on Wednesday.
The meeting brought together representatives from major telecom operators, including MTN Nigeria, Airtel, Globacom, and 9Mobile.
Also in attendance were regulators such as the Nigerian Communications Commission and the National Information Technology Development Agency.
This intervention follows a disclosure by the Chief Executive Officer of MTN Nigeria Communications Plc, Karl Toriola, who recently revealed that telecom companies had submitted a request for a 100% tariff increase to regulators.
According to Toriola, the rising operational costs within the sector have created an unsustainable financial environment.
“The cost we are expending is actually exceeding our revenue. Even though we are seeing revenue growth, there is no way that the industry can continue to sustain itself and provide the required quality of service under this structure.
“We have put forward the request of approximately 100% in tariff increases to the regulators. I doubt they are going to approve that quantum of increases because they are very sensitive to the current economic situation in the country.
“But we are hopeful and optimistic that the realities are staring us in the face and the right decision will be taken for the sustainability of the industry,” Toriola explained.
In addition to MTN’s position, the Association of Licensed Telecoms Operators of Nigeria has separately approached the NCC, requesting a 40% tariff hike to help offset rising costs.
Under this proposed adjustment, the cost of telecommunications services would see noticeable increases, A voice call would rise from N11.00 to N15.40 per minute,
Short Message Services (SMS) would increase from N4.00 to N5.60.
The cost of one gigabyte of data would move from N1,000 to N1,400.
Despite these arguments, the proposed hikes have drawn criticisms from consumer advocacy groups.
The National President of the National Association of Telecommunications Subscribers, Deolu Ogunbanjo, warned that any tariff increase would place an additional burden on already-strained subscribers.
“Raising tariffs at this time will worsen the plight of consumers, who are already struggling under the weight of inflation and other economic challenges.
“The operators must look for alternative ways to manage costs without shifting the burden onto subscribers,” Ogunbanjo said.
While the NCC has not yet made a public decision, the ongoing deliberations highlight the delicate balance between ensuring the financial sustainability of telecom operators and protecting consumers from higher costs.
As discussions continue, Nigerians are keenly watching for the outcomes of this critical engagement between the government, regulators, and telecom operators.
