Telecoms propose 100% tariff hike
Nigerian telecommunications companies have requested a 100% tariff increase to cope with rising operational costs, such as inflation and higher service delivery expenses.
This was disclosed by the Chief Executive Officer, MTN Nigeria, Karl Toriola, during an interview on Arise TV.
The CEO however noted that it is still unclear whether the Nigerian Communications Commission, the telecom regulator, will approve the proposal.
He said that the proposed tariff increase is crucial for the industry’s sustainability, as it continues to face significant financial pressures from rising operational costs.
“We’ve put forward requests of approximately 100 per cent 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.
The MTN CEO remained optimistic that regulators would assess the sector’s realities and make an appropriate decision.
He stressed that the priority is maintaining the industry’s long-term sustainability over short-term profitability.
He noted “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.”
The proposal arises from escalating costs faced by telecom companies, driven by inflation, exchange rate fluctuations, and rising prices of essential inputs such as diesel, power generation, and raw materials.
Recall, the operators earlier warned in a statement that service disruptions are likely unless tariffs are adjusted to reflect rising operational costs.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Engr. Gbenga Adebayo, described the telecom sector as being “under siege,” highlighting the soaring operational costs driven by inflation, fluctuating exchange rates, and rising energy prices.
