By Ayomide Otitoju
MTN Nigeria’s CEO, Karl Toriola, revealed that telecommunications companies in Nigeria are collectively proposing a 100% tariff increase to the government, citing rising operational costs, inflation, and naira devaluation as key factors making the increase essential for the survival of the industry.
Speaking on Trust Africa News’ Sunrise Daily on Friday, Toriola acknowledged that while the government is likely to be cautious about granting such a significant increase due to concerns over consumer affordability, he remains hopeful for a “substantial” adjustment, potentially implemented progressively over the course of the year.
“At MTN, we believe a 100% tariff adjustment is necessary. The entire industry is aligned on this, as we are all facing similar challenges. While the government is sensitive to the pressures inflation and currency devaluation have placed on consumers, we are optimistic that they will approve a meaningful increase,” Toriola said.
The MTN CEO pointed out that nearly all sectors in Nigeria, including aviation and power, have raised tariffs, leaving telecoms as one of the few industries yet to implement such adjustments. He also noted that global assessments indicate Nigeria’s telecom tariffs, both for data and voice, are among the lowest in the world.
Toriola emphasized that an increase in tariffs would ensure the sustainability of the telecoms industry by allowing continued investment in infrastructure, such as power systems and network capacity. He added that the move would also address quality of service issues, ensuring that consumers receive the high-quality networks they deserve.
Describing 2024 as a challenging year for the industry due to economic pressures, Toriola expressed gratitude toward policymakers for taking steps to foster long-term sustainability within the sector.
