Telecommunications giants like MTN Nigeria and Globacom are seeking approval from the Nigerian Communications Commission (NCC) to raise their tariffs, citing foreign exchange losses and escalating energy costs that led to losses last year.
This move comes hot on the heels of MultiChoice, a South African pay television company, increasing its tariff, alongside several other companies such as Discos and brewing firms, who have recently adjusted their prices.
In a joint statement issued by the Association of Licensed Telecom Companies of Nigeria and the Association of Telecom Companies of Nigeria, the telecom operators highlighted the adverse economic conditions and regulatory constraints that have prevented them from adjusting their service pricing framework for over a decade.
They emphasized the need for a pricing mechanism that aligns with economic realities and ensures the industry’s sustainability while maintaining investor confidence. The associations urged the federal government to engage in constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumer affordability with operators’ financial viability.
Despite rising inflation and economic challenges, the telecom industry has refrained from adjusting its prices due to regulatory restrictions. Efforts to reach the NCC for comment on the tariff hike request were unsuccessful at the time of publication.
The NCC holds authority over pricing in the telecom sector, and any price changes require regulatory approval. The regulator is currently conducting a cost-based study to determine whether to approve the proposed tariff increments.
Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria, emphasized the necessity of a cost-reflective tariff, warning of the repercussions of price control on the sector’s sustainability and infrastructure.
The telecom industry faces mounting operational costs stemming from foreign exchange scarcity, network expansion, and upgrades, all of which have contributed to declines in operators’ bottom lines. As stakeholders await regulatory decisions, the industry braces for potential changes that could impact both consumers and operators alike.
