Nigeria’s telecommunications industry faces a looming financial crisis, with operators citing unsustainable operating costs and an outdated tariff structure as major challenges.
Industry leaders have issued warnings that without the 50 percent tariff hike, the sector risks insolvency, potentially triggering network failures with recovery timelines stretching into years.
These warnings come as the Nigeria Labour Congress (NLC) plans mass protests against the proposed increase.
Tobe Okigbo, MTN Nigeria’s chief corporate services and sustainability officer, painted a bleak picture of the industry’s future during the telecom CEOs forum held yesterday in Lagos, emphasising the urgent need to address pricing challenges.
He pointed out the stark contrast between soaring costs for essential goods (like “tomatoes, bread, and potatoes,” which have increased by over 100 percent in the past year) and stagnant telecom tariffs.
“The discussion should not be about whether we should increase prices; it should be about whether we want a telecom sector that continues to drive the Nigerian economy. If operators can no longer sustain services due to financial strain, the cost of restoring the industry will be immense,” Okigbo stated.
