Nigerian telecommunications companies have proposed a 100 per cent increase in their tariffs, pending approval from the government.
The proposal, which has been submitted to the Nigerian Communications Commission, aims to address rising operational costs, including inflation and increased service delivery expenses.
The disclosure was made by the Chief Executive Officer, MTN Nigeria, Karl Toriola, during an interview on the business section of Channels Television’s Sunrise Daily on Friday, Toriola expressed doubts that the government will grant the 100 per cent increase request, but hopeful of a substantial increase.
The Chief Executive Officer of MTN Nigeria, Karl Toriola, says telecommunication companies are unanimously proposing a 100 per cent increase in tariffs to the Nigerian government.
However, the CEO expressed that it remains uncertain whether the Nigerian Communications Commission (NCC)—the telecom regulator, will approve the proposal.
He noted that the rising operational cost, inflation and naira devaluation have made the increase in tariffs very necessary for the survival of the industry.
The CEO emphasised that the focus is on ensuring the long-term sustainability of the industry, rather than short-term profitability.
“I believe we’re all on the same side, the policymakers, the regulators, our Chairman of ALTON, Gbenga Adebayo, and the industry. We’re united because we share concerns about a few fundamental issues. First, human rights, are critical to driving any economy. Without a sustainable industry, the broader economy and the well-being of the people will be negatively impacted.”
“We at MTN believe we need adjustment of about 100 per cent, I think the industry is pretty much aligned because we are all experiencing the same headwinds. Now, the government is very sensitive to squeezing consumers’ wallets with the pressures that have come from inflation and currency devaluation on consumers.
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“So, I’m not sure they will give us 100 per cent, but I am optimistic they will give us something substantial and maybe progressively over the course of the year we can have smaller adjustments that will help us to get back to where we need to be,” Toriola said.
The MTN CEO said that almost every other sector in the country, including aviation and power have increased tariffs except the telecoms industry.
According to him, all the bodies that look into the statistics of the telecoms industry globally have disclosed that Nigeria has probably the second or third lowest tariffs in the world on data as well as on voice.
He assured that with an increase in tariffs, the issue of sustainability in the telecoms industry will be resolved.
“What the tariff allows us to do is to continue to invest, continue to build capacity, build resilience, put in additional generators, authentic power supply system to give you authentic to give you stable and high-quality networks.
“So, it addresses sustainability and also enables the regulators to hold the big stick on the issue of quality of service and allows us consequently to invest in giving the quality of service Nigerians deserve,” he said.
Toriola described 2024 as a torrid year for the telecoms industry in Nigeria due to rising inflation and devaluation of the naira currency by the government.
He highlighted the pressure these rising costs have put on telecom businesses, making it difficult for many companies to maintain profitable operations
He, however, appreciated the policymakers for taking some steps that will make the industry sustainable subsequently.
The proposal comes amid rising costs for telecom companies, driven by factors such as inflation, exchange rate fluctuations, and the increasing price of key operational inputs like diesel, power generation, and raw materials.
