MTN, Glo, and Other Telcos Seek Tariff Hike Approval from NCC in Nigeria

Major telecommunications companies in Nigeria, including MTN, Glo, Airtel, and 9Mobile, are seeking approval from the Nigerian Communications Commission (NCC) to increase tariffs. The telcos, represented by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), argue that the current pricing framework has not been reviewed upward in the last 11 years due to regulatory constraints, despite adverse economic conditions.

The telecom operators are urging the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers' affordability with operators' financial viability. They claim that the current price control mechanism is not aligned with economic realities, threatening the industry's sustainability and potentially eroding investor confidence.

Why this matters: The proposed tariff hike by Nigeria's leading telecom companies could have significant implications for millions of consumers and businesses that rely on their services. The outcome of this request will impact the affordability and accessibility of telecommunications services in the country.

The telcos have also expressed concerns about the worsening security challenges affecting the productivity of their services. They are calling on the government to prioritize the security of telecommunications infrastructure and collaborate with law enforcement agencies to combat vandalism and sabotage.

In a joint statement, ALTON and ATCON emphasized the importance of regulatory neutrality and independence to ensure a thriving telecommunications sector in Nigeria. They reaffirmed their commitment to working collaboratively with the government to address the numerous challenges confronting the industry, including infrastructure development, security threats, and regulatory independence.

"The telecommunications industry is the only sector that has not reviewed its general service pricing framework upward in the last 11 years due to regulatory constraints, despite adverse economic conditions," the associations stated, highlighting the need for a pricing review to ensure the sector's sustainability and attract investment.

Key Takeaways

• Major Nigerian telcos seek NCC approval to increase tariffs after 11 years
• Telcos argue current pricing framework is unsustainable due to economic conditions
• Proposed tariff hike could impact affordability and accessibility of telecom services
• Telcos raise concerns about security challenges affecting productivity of services
• Telcos call for regulatory neutrality and independence to ensure industry growth