Nigerian Telcos and ICT Firms Owe Banks N1.69tn Amid Calls for Tariff Increases

As of September 2024, Nigeria’s telecommunications and ICT companies owe banks a total of N1.69 trillion, according to the Central Bank of Nigeria’s quarterly statistical bulletin. This comes at a time when telecom operators are pushing for an increase in tariffs for data and voice calls. The debt represents a decrease of N68.04 billion (3.9%) compared to the N1.77 trillion owed in September 2023, reflecting the effects of the Central Bank’s interest rate hikes. These hikes, implemented to combat inflation, have made borrowing more expensive for the sector. Month-on-month, however, the debt increased by N31.61 billion (1.9%) from August 2024. Despite these challenges, Nigeria’s ICT sector remains a significant contributor to the country’s GDP, contributing 16.35% in Q3 2024, though down from 19.78% in Q2 2024. The government has recently approved tariff increases for telecom operators.