Newscenter Media News The National Association of Telecommunications Subscribers (NATCOMS) has issued a strong plea to telecom operators in Nigeria, urging them to explore capital market funding instead of imposing a proposed tariff hike of up to 100%.
Speaking on Monday via a press release, NATCOMS President Adeolu Ogunbanjo argued that the financial burden of such an increase would be devastating for millions of Nigerians, particularly low-income subscribers already struggling with inflation and economic hardship.
“Why should the burden of rising costs always fall on subscribers?” Ogunbanjo questioned in a press release. “There are sustainable alternatives, like raising funds through the capital market, that would not further strain consumers.”
Ogunbanjo highlighted the success of MTN Nigeria’s stock market listing as a model for other telecom operators. In 2019, MTN Nigeria became publicly listed, allowing it to raise significant funds through Initial Public Offerings (IPOs).
“They can go to the capital market to raise funds. Nigerians will buy their shares, and I am confident it will be oversubscribed. MTN has already done this successfully. Other operators like Glo and Airtel should follow suit,” Ogunbanjo said.
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An IPO allows companies to sell shares to the public for the first time, generating capital for critical investments. According to Ogunbanjo, this strategy could enable telecom firms to finance infrastructure upgrades, regulatory compliance, and technology investments without shifting costs onto consumers.
The telecom industry is grappling with soaring operational costs driven by Nigeria’s economic volatility. Currency devaluation, skyrocketing diesel prices, and rising power generation costs have placed immense strain on operators.
“The valuation of the currency has drastically changed, with official exchange rates moving from about N450 to over N1,550 per dollar,” said MTN Nigeria’s CEO, Karl Toriola, during an interview with Arise TV last week. “This has significantly increased our cost structures.”
Diesel prices, once around N200-300 per litre before the COVID-19 pandemic, have surged to over N1,000 per litre. Meanwhile, the prices of essential telecom inputs like fibre cables, batteries, and base stations have also skyrocketed, leaving operators searching for ways to manage rising expenses.
For telecom subscribers, a tariff increase would be the last straw in a tough economic climate. Many already struggle to afford basic services, and doubling the cost of calls and data would further deepen digital inequality.
Ogunbanjo emphasized that telecom companies must prioritize sustainable solutions over quick fixes. “Operators need to innovate. Leveraging the capital market offers a win-win: they get the funds they need, and subscribers are not unfairly burdened.”
With the debate heating up, all eyes are now on telecom operators like Glo and Airtel to see whether they will embrace the capital market as a solution. For millions of Nigerians, the stakes are high. A decision to implement tariff hikes could mean a step backward in accessibility to essential telecom services, but a pivot to the capital market could set a precedent for sustainable growth in the industry.
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