Karl Toriola, the Chief Executive Officer of MTN Nigeria, has revealed that telecommunication companies in Nigeria are jointly proposing a 100% increase in tariffs to the government. The recommendation comes in response to rising operational costs, inflation, and the devaluation of the naira, which Toriola says have put immense strain on the sector.
While expressing skepticism about the government approving a full 100% hike, Toriola remained optimistic about a “substantial increase” being granted. He also suggested that gradual adjustments over the year could help stabilize the industry.
“We at MTN believe we need adjustment of about 100%. 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,” Toriola stated.
Toriola highlighted the disparity between Nigeria’s telecom tariffs and those of other countries, pointing out that Nigeria has some of the lowest tariffs globally for both data and voice services. He emphasized that almost every other sector, such as aviation and power, has already increased tariffs to cope with the prevailing economic challenges, leaving telecoms as an outlier.
The MTN CEO argued that raising tariffs is critical for the industry’s sustainability. He assured consumers that the proposed increases would enable telecom companies to invest in infrastructure, improve service quality, and ensure resilience in the face of rising costs.
“What the tariff allows us to do is to continue to invest, build capacity, and enhance resilience, including installing additional generators and robust power supply systems to provide stable, high-quality networks,” Toriola explained.
Reflecting on the challenges of 2024, he described the year as “torrid” for the telecoms industry due to inflation and currency devaluation. However, he acknowledged the efforts of policymakers in taking initial steps to stabilize the sector for the future.
The proposed tariff hike is expected to spark widespread debate as Nigerians grapple with the broader implications of inflation and economic pressures on household budgets.
