MTN Nigeria has revealed that telecommunications companies are seeking a 100% tariff increase, but it remains uncertain whether the telecom regulator Nigerian Communications Commission, (NCC), will approve the proposal.
The disclosure was made by the Chief Executive Officer, MTN Nigeria, Karl Toriola, who made the disclosure during an interview yesterday, said the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational costs.
“We’ve put forward requests of approximately 100% tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country”, Toriola said.
Despite the challenges, Toriola expressed optimism that regulators would make the right decision, taking into account the realities of the sector. The CEO emphasised that the focus is on ensuring the long-term sustainability of the industry, rather than short-term profitability.
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 such as diesel, power generation, and raw materials. Toriola highlighted the pressure these rising costs have put on telecom businesses, making it difficult for many companies to maintain profitable operations.
Recall that earlier this week, operators issued a statement warning that service disruptions are imminent unless tariffs are adjusted to account for escalating operational costs. The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, (ALTON), Engr. Gbenga Adebayo described the telecoms sector as “under siege”, citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.
