Telecommunications operators in Nigeria remain largely insulated from the direct impact of the recently imposed 14% U.S. tariff on Nigerian exports, initiated by former U.S. President Donald Trump. The sector’s limited exposure to exports and its heavy reliance on imports for infrastructure and equipment has protected it from the immediate fallout of the policy.
“The industry is primarily import-driven and doesn’t engage in exports, so the direct effect is minimal,” explained Tony Emoekpere, President of the Association of Telecommunication Companies of Nigeria (ATCON), which represents stakeholders such as internet service providers, data centre operators, and tower infrastructure firms.
However, while the telecom sector may not be directly targeted, broader macroeconomic consequences stemming from the tariff may present indirect threats. These include pressures on foreign exchange reserves, rising inflation, and weakened consumer purchasing power, all of which could impact telecom operators’ capacity to sustain service delivery and manage operational expenses.
Gbenga Adebayo, President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON) which includes major operators like MTN Nigeria, Airtel Nigeria, Globacom, and 9mobile pointed out potential disruptions in international call billing. “There’s no export of telecom hardware, but if VAT on calls made in the U.S. increases, local operators may need to adjust their rates accordingly,” he noted.
Recently, Nigerian telecom operators raised service tariffs by up to 50%, citing inflation, currency depreciation, and surging operational costs. The price adjustment aims to support continued investment in network upgrades and infrastructure. Yet, had the U.S. export tariffs extended to telecom-related trade, these efforts could have been severely hampered.
While crude oil exports remain exempt from the tariff, other non-oil sectors are affected. According to the National Bureau of Statistics (NBS), the U.S. ranks as Nigeria’s second-largest export destination, accounting for ₦1.6 billion in transactions as of the third quarter in 2024, representing 8.25% of total exports. A reduction in non-oil export earnings could put additional pressure on Nigeria’s volatile foreign exchange reserves, complicating the affordability of imported telecom equipment priced in dollars and euros.
The broader economic ripple effects are also concerning. With reduced global demand for Nigerian exports, the naira could face renewed depreciation, fuelling inflation and eroding household incomes. For telecom operators, this means tighter profit margins, especially as customers scale back spending on non-essential services.
Though operators have adjusted pricing, consumers remain vocal about continued issues with network quality and service reliability. Amid economic uncertainty, striking a balance between maintaining affordability and investing in infrastructure will be critical. The sector’s long-term resilience will depend not only on internal cost management but also on supportive government policies and proactive international trade negotiations.
Encouragingly, Nigerian authorities have expressed openness to engaging with the U.S. to mitigate any adverse impacts from the export tariffs and preserve the stability of strategic sectors, including telecommunications.
