Nigerian mobile operators are ready to use the revenue from a proposed 100% tariff hike to revamp their network infrastructure. The move comes as the country’s telecom giants await government approval for the tariff increase.
Under the agreement, the Nigerian Communications Commission (NCC) will oversee the investment in infrastructure upgrades and better service quality. MTN Nigeria CEO, Dr. Karl Toriola, confirmed this in a recent column, highlighting the tough economic conditions operators are facing. Inflation is at 34%, and the naira-dollar exchange rate is volatile. Running costs have surged by 300% in the past two years, making the tariff hike essential for long-term sustainability.
Despite the necessity of the increase, many subscribers oppose it. Some have even threatened legal action if the government approves the tariff hike. Toriola assures that the increase will be capped and much lower than hikes in other sectors like oil and energy. The tariff raise aims to improve the network and maintain service quality.
Foreign investments in the telecom sector have plummeted. In Q3 of 2024, investments fell by 87%, dropping to just $14.4 million from $113.42 million in the previous quarter. This signals the urgent need for infrastructure upgrades, a sentiment echoed by Toriola.
Airtel Nigeria CEO, Dinesh Balsingh, supports the tariff adjustments. He says the increase is necessary to ensure sector sustainability and provide better services. Tariffs have stayed the same for over a decade, even though operating costs have skyrocketed.
The government’s decision will determine the future of Nigeria’s telecom industry. The hope is that this move will help boost Nigeria’s growing digital economy.