Telecom Operators in Nigeria Prepare for Tariff Increase Amid Economic Challenges

Telecommunications operators in Nigeria are preparing to increase tariffs for voice and data services due to the current economic conditions in the country. A cost-based study conducted by KPMG, on behalf of the Nigerian Communications Commission (NCC), is nearing completion and aims to recommend an appropriate pricing structure based on economic variables. Telecom officials anticipate the study’s outcomes to recommend a tariff increase, citing factors such as the high cost of diesel and the depreciation of the naira against the dollar, which affects equipment imports. The officials emphasize the urgency of the price increase to sustain the telecom businesses and warn that further delays could threaten their viability.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has also called for a tariff hike, highlighting rising operational costs and the need to reflect macroeconomic changes. The Nigerian Communications Commission regulates telecom tariffs based on cost-based and empirical studies to ensure fair pricing, healthy competition, and sustainability for the industry. Rising inflation in Nigeria further adds to the economic challenges faced by consumers and businesses.