The Chief Executive Officer of MTN Nigeria, Karl Toriola, has stated that telecommunications companies are collectively urging the Nigerian government to approve a 100 percent tariff increase.
He explained that escalating operational costs, inflation, and the devaluation of the naira have made such an increase essential for the survival of the sector.
MTN Chief Executive Officer, Karl Toriola, disclosed this, yesterday when he featured on a TV programme to speak on some burning issues in the industry.
“We at MTN believe a 100 percent adjustment is necessary. The entire industry is aligned on this because we are all grappling with the same challenges. However, the government is mindful of the impact on consumers, who are already dealing with inflation and currency devaluation,” Toriola said. “While I’m not sure they will approve the full 100 percent, I am hopeful for a meaningful increase. Additionally, we may see smaller, incremental adjustments over the course of the year, which could help the sector return to a sustainable position.”
Toriola pointed out that nearly every other sector in Nigeria, including aviation and power, has raised tariffs, with the telecom industry being the notable exception.
He also referenced global industry reports, which indicate that Nigeria likely has the second or third lowest telecom tariffs worldwide, both for data and voice services.
He assured that a tariff increase would enable telecom companies to maintain sustainability within the industry. “The tariff adjustments will allow us to continue investing in infrastructure, building capacity, and enhancing resilience. This includes investing in additional generators, a more reliable power supply, and improving the overall quality of networks.”
Toriola emphasized that the tariff increase would ensure the long-term sustainability of the sector and give regulators the ability to enforce quality-of-service standards while allowing for the necessary investments in infrastructure to meet the needs of Nigerian consumers.
Toriola described 2024 as a challenging year for the telecoms industry, citing the ongoing effects of rising inflation and naira devaluation. Nevertheless, he expressed gratitude towards policymakers for taking steps that will foster long-term industry sustainability.
