Subscribers of MTN and other telecommunication companies (TELCOs) will face hard times as the operators move to increase their service tariffs in the country.
This comes after the Chief Executive of MTN Nigeria, Karl Toriola, disclosed that the telecommunications firms have sent a proposal to the Nigerian Communications Commission (NCC) for a 100 percent service tariff increase.
Toriola spoke during an interview on Arise TV on Thursday, where he said the proposal aims to address rising operational costs, including inflation and increased service delivery expenses.
According to Toriola, the proposed tariff hike is necessary for the sustainability of the industry, which has been facing significant financial pressures due to rising operational costs.
The good news, however, is that the CEO said it remains uncertain whether the Nigerian Communications Commission, the telecom regulator, will approve the proposal owing to existing economic hardship in the country.
Toriola stated, “We’ve put forward requests of approximately 100 percent 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.”
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.
“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 comes amid rising costs for telecom companies, driven by factors such as inflation, exchange rate fluctuations, and the increasing price of key operational inputs like 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.
Earlier this week, operators issued a statement warning that service disruptions are imminent unless tariffs are adjusted to account for escalating operational costs.
This comes amid heightened speculation of an imminent telecom service tariff hike in Nigeria, this year.
The Chairman of the Association of Licenced Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, recently threatened a shutdown of operations without a tariff hike.
Adebayo described the telecom sector as being “under siege,” citing soaring operational costs driven by inflation, volatile exchange rates, and rising energy prices.
He noted that despite these challenges, tariffs have remained unchanged, leaving operators struggling to maintain quality service and expand their networks.
The telecom chief warned that without an immediate tariff adjustment, operators may resort to service shedding, leading to limited availability of telecom services in certain areas.
The first call for a tariff adjustment was made in April 2024, but no significant progress has been achieved.
However, telecom subscribers have repeatedly rejected any move to hike tariffs.
