Nigerian Telecom Giants Plan Tariff Hike

Nigerian telecom giants, including Glo, MTN, Airtel, and others, are contemplating an increase in their tariffs for call and data services. This move has sparked discussions among Nigerians, with many expressing concerns about the potential financial burden amidst other rising costs. The reasons behind the increase remain unclear, but it is speculated that the telecom companies are seeking to offset the soaring costs of operation and investment in the sector. The last time a significant tariff adjustment was proposed by telecom operators was 11 years ago.

The telecom operators have been facing several challenges, such as multiple taxation, prohibitive right-of-way charges, inadequate electric power supply, and vandalism of telecommunications infrastructure. These factors have led to a steep increase in operational costs. Additionally, the Russia-Ukraine war has reportedly caused a 40% surge in the cost of operations for these telecom companies since it began.

Despite the demands from the telecom operators for an upward tariff review, the Nigerian Communications Commission (NCC) has previously rejected attempts by the operators to pass on rising costs to customers. The NCC had initially approved a 10% tariff increase for different voice and data packages but later directed the affected Mobile Network Operators to reverse the upward tariff adjustment. The commission emphasized that any increase must be justified and should not subject subscribers to a hike in charges, considering the profitability of the telecom sector.

The proposed tariff hike has been met with mixed reactions from the public, with some arguing that the increase is necessary to ensure the sustainability and quality of service in the telecom sector. On the other hand, there are concerns that the hike would disproportionately affect low-income earners and exacerbate the financial strain on the general public.

As of now, the telecom operators are seeking government intervention to facilitate constructive dialogue and address the challenges faced in the industry. The federal government and the NCC are yet to make a final decision on the proposed tariff hike.