Nigeria’s telecom industry is on the brink of major disruptions as operators threaten to cut services due to the Nigerian Communications Commission’s (NCC) delay in approving a tariff increase.
Telecom companies, including MTN and Airtel, argue that rising costs—like expensive diesel, maintenance, and a weak naira—are crippling their operations. MTN Nigeria, with 79.7 million subscribers, reported a N137 billion loss in 2023, mainly due to foreign exchange issues. Similarly, Airtel Nigeria, with 50.9 million subscribers, reported a $89 million loss in 2024, with $770 million tied to the naira’s devaluation.
According to MTN’s CEO, Karl Toriola, the industry is “barely surviving” and requires urgent government intervention. Airtel’s CEO, Carl Cruz, added that the devaluation of the naira has worsened the situation, making it difficult to invest in infrastructure and sustain operations.
Telecom operators have warned that if tariffs are not adjusted, they may adopt “load shedding,” a system where network access is rationed. This means some areas may lose mobile and internet services for extended periods.
The chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, said, “If operating costs remain this high and tariffs don’t increase, we might have to limit network access in certain areas to keep the industry afloat.”
The NCC has yet to respond to these concerns, frustrating telecom companies. However, industry experts, like Jide Awe of Jidaw Systems Limited, acknowledge the difficulty of balancing the operators’ need for higher tariffs with the financial struggles of Nigerians, who are already burdened by rising living costs.
Meanwhile, the Nigerian Communications Satellite (NIGCOMSAT) Limited has offered to partner with telecom operators to reduce costs by sourcing equipment at discounted rates and exploring local manufacturing options. According to NIGCOMSAT’s marketing head, Olufunke Fagbeja, these partnerships aim to ease the burden on operators and improve telecom services nationwide.