Nigeria: Telecommunications operators in Nigeria, including MTN Nigeria and Globacom
By Zuleihat Owuiye, Mamos Nigeria
Telecommunications operators in Nigeria, including MTN Nigeria and Globacom, have requested approval from the Nigerian Communications Commission (NCC) to raise their tariffs. The operators are facing foreign exchange losses and rising energy costs, which resulted in losses last year. The request for a tariff increase comes after MultiChoice, a South African pay television company, raised its tariffs. The telecommunications industry has not raised its service prices in the last 11 years, primarily due to regulatory constraints.
The industry associations are calling on the government to facilitate a constructive dialogue to address pricing challenges and establish a framework that balances affordability for consumers and financial viability for operators. The NCC regulates prices in the telecom industry, and operators cannot implement price changes without regulatory approval. The regulator is currently conducting a cost-based study to determine if it will approve price increments for the operators. Telcos warn that if urgent action is not taken, many operators may be forced to shut down operations, leaving millions of Nigerians without access to vital communication services. Subscribers and economists support the move by telecom operators to increase tariffs, as they believe it will help operators offset the rising cost of operations and sustain their businesses. The cost of operation for telecom operators has increased significantly, and they cannot continue to operate at a loss. However, regulatory approval is required for any tariff increase to take effect.
