Nigeria’s telecom industry has largely sidestepped the direct impact of the new 14% U.S. tariff on Nigerian exports, thanks to its import-driven nature. According to Tony Emoekpere, President of ATCON, telecom companies don’t export goods and thus remain unaffected by the tariff targeted at non-oil exports.
However, experts warn of indirect economic consequences. The tariff could strain Nigeria’s foreign exchange reserves by reducing non-oil export earnings, which may in turn drive up inflation and increase the cost of importing telecom infrastructure—most of which is sourced from the U.S., China, and Europe.
Gbenga Adebayo, President of ALTON, also noted that while local operators may not directly export, changes in international call tariffs due to increased VAT in the U.S. could indirectly affect pricing and operations.
The industry is already grappling with inflation and a weakened naira, leading to a 50% increase in service tariffs to sustain operations and invest in better infrastructure. But these price hikes have sparked consumer backlash, especially as service quality remains poor despite higher costs.
As foreign exchange earnings decline, the pressure on telecom operators could intensify—threatening profitability, investment, and affordability in one of Africa’s most price-sensitive markets.
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